ARTICLE · 28 NOVEMBER 2024

VAT On Private School Fees In The UK: Practical Tips To Navigate The Changes

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The Labour government plans to impose 20% VAT on UK private school fees starting January 2025, potentially raising £1.5 billion for state education. Families must consider financial planning options to address increased costs and affordability challenges.

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By introducing VAT on private school fees, Labour aims to generate additional revenue that could be reinvested into the state education system.

The first budget of Keir Stamer's government provided lots to unpack but one announcement perhaps shouldn't have come as a surprise – Private school fees were rooted to the Labour Party's election campaign and many will need help adapting their finances to meet the additional cost if they currently have, or plan to have, children in private education.

Currently, private schools in the UK benefit from charitable status, which exempts them from charging VAT on fees.

By introducing VAT on 1 January 2025 at the standard rate of 20% on private school fees, Labour aims to generate additional revenue that could be reinvested into the state education system.

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