Taxation of private school fees in the United Kingdom

Background

As of January 2024, there were 2,421 private schools in England in total, a small increase from 2,408 in January 2023. There were a further 90 independent schools in Scotland (October 2024), 83 in Wales (September 2024), and 14 in Northern Ireland (October 2023). ^[1]

Introduction

Rachel Reeves announced the introduction of VAT in the October 2024 United Kingdom budget.

In its 2017, 2019, and 2024 general election manifestos, the Labour Party pledged to end the VAT exemption on private school fees, using the revenue to fund free primary school meals and broader support for all children. ^[2]

On 30 October 2024, Chancellor Rachel Reeves delivered the Autumn Budget, confirming plans to apply VAT to private school fees from January 2025 and to end charitable rate relief for private schools from April 2025. ^[3]

References

Citations

1. Maisuria et al. 2024, p. 5.
2. Seely 2025, pp. 11–14.
3. Seely 2025, p. 27.

Bibliography

• This article incorporates text published under the United Kingdom Open Parliament Licence : Maisuria, Alpesh; Rowland, Lisa; Seely, Antony; Roberts, Nerys (4 October 2024). Independent schools: taxation and charitable status (Report). House of Commons Library. SN05222. Retrieved 26 May 2025.

• This article incorporates text published under the United Kingdom Open Parliament Licence : Seely, Antony (22 May 2025). VAT on private school fees (Report). House of Commons Library. CBP-10125. Retrieved 26 May 2025.