'They grumble and resolve to pay' – advisers on school fees VAT impact

Labour’s 20% VAT on independent school fees starts in January

clock • 4 min read

A warned-of rash of private school pullout decisions has yet to emerge as parents and grandparents weigh up their options when it comes to VAT on school fees, advisers have told PA.

Under Labour plans, VAT on private school fees will be charged at 20% from January 2025, a term into the school year. The imposition has driven concerns from some quarters that not only could the move impact pupils and smaller, less economically stable private schools but may also put additional pressure on the state system. Research from financial advice group Saltus, carried out prior to the July general election that saw Labour propelled into power, found that 26% of HNWIs believed their child or children would have to switch schools under new rules. However, financial advisers tol...

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