The UK government has confirmed that, starting 1 January 2025, private school fees and boarding services will be subject to a 20% value-added tax (VAT). This policy, announced by Chancellor Rachel Reeves on 29 July 2024, removes the longstanding VAT exemption on private K-12 education and boarding services. The new tax applies to all fee payments made on or after 29 July 2024 for school terms beginning 1 January 2025 or later.
This change was anticipated after the Labour Party’s election manifesto proposed the VAT, but the Independent Schools Council (ISC) has been advocating against it for months. ISC Chief Executive Julie Robinson criticized the earlier-than-expected implementation date, saying, “Families will have made choices about education months before an election was called; they cannot adequately plan for their children’s futures based on speculation, uncertainty, and constantly shifting dates.”
Robinson also highlighted the potential disruption to students, as families may be forced to seek in-year admissions to state schools due to the increased financial burden. The ISC’s Head of Media and Communications, Sarah Cunnane, further warned that school closures are likely, which could affect thousands of children’s education.
A recent survey by the UK Boarding Schools’ Association found that 60% of Chinese parents would reconsider their choice of UK private schools due to the VAT, with 9% indicating they might opt for education in another country.
The policy is expected to impact many families and schools across the UK, with concerns growing over the future of private education.
