VAT on private school fees challenged in court

Jan 30, 2025

A legal challenge against the Government’s decision to apply VAT to private school fees will be heard in the High Court between 1-3 April. Six families, supported by the Independent Schools Council (ISC), are taking Chancellor Rachel Reeves to court, questioning the policy’s legality.

The introduction of VAT in January has significantly impacted families, forcing them to reassess their options. The claimants include families representing special educational needs and disabilities (SEND), faith-based schools, bilingual education, and girls-only schools.

The ISC has raised concerns about the policy’s broader consequences, providing detailed evidence of its effects across the independent education sector. The 20% VAT charge, announced in July, took effect on 1 January 2025, mid-school year. Critics argue this timing left parents scrambling to adjust financially, disrupting children’s education.

The families are seeking a declaration of incompatibility under section 4 of the Human Rights Act, arguing that the amendments to the Value Added Tax Act 1994 (VATA 1994) conflict with their rights under the European Convention on Human Rights (ECHR).

The case is being expedited following a January court hearing. During that hearing, Lord Pannick emphasised the urgency, stating that families need clarity as they are already feeling the financial strain of the VAT charges.

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