Removal of relief for private schools in England
On 29 July, the government announced that, as of 1 January 2025, all education, boarding, and vocational training provided for a charge by a private school in the UK will be subject to VAT at the standard rate of 20 per cent. Any fees paid from 29 July 2024 relating to the term starting in January 2025 onwards will be subject to VAT. The government also announced that schools in England with charitable status would lose their eligibility for business rates charitable rate relief from April 2025, subject to Parliamentary passage of the legislation.
	Full details were set out in a technical consultation that was published on 29 July 2024 which noted the removal of the charitable rate relief for eligible private schools would come into effect from April 2025. 6 A response to this consultation was published by the Government on 30 October 2024. 7 The Act implements the government’s policy to end the charitable rate relief for eligible private schools (i.e. those that are charities).
	In the technical consultation the government recognised that some pupils have special educational needs that can only be met in a private school and that they would consider how to address the potential impact of the removal of charitable rate relief on such schools. The government therefore confirmed in its response to the technical consultation that private schools wholly or mainly concerned with the provision of education to children with an Education, Health and Care Plan will, where charities, retain their charitable rate relief.