- King Charles III confirmed in his recent King’s Speech that the UK Government will remove the Value Added Tax (VAT) exemption currently enjoyed by private schools.
- This move is part of the Labour party’s commitment to eliminate tax benefits associated with charitable status for all UK independent schools and impose a tax of up to 20% on the fees they charge.
- Currently, private schools do not have to charge VAT on their fees due to a legal exemption for educational organizations.
- However, starting from the 2025 school year, VAT at 20% will be added to private school fees, with the aim of funding 6,500 new teachers across the UK.
- The policy is estimated to raise approximately £1.7 billion annually, supporting education initiatives and nurseries.
- Parents and schools are expressing concerns about the impact of this change, especially for children with Special Education Needs (SEND) who attend private schools.
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