Autumn Budget 24: Labour pushes forwards with private school fees VAT

Change introduces 'new challenges' for families

Jen Frost
clock • 4 min read

Go-live date of 1 January 2025 confirmed in Autumn Budget.

Under the new rules, independent school fees will be subject to VAT at the standard rate of 20%. Private schools will also face a removal of business rate relief from April next year. These and tax avoidance measures are expected to raise over £9bn, Reeves said. "From a financial planning perspective, this change introduces new challenges for families relying on private education," said Quilter tax and financial planning expert Shaun Moore. "Adding VAT could significantly increase school fees, with the average cost for a day pupil likely to rise by around £3,100 per year." The gove...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

Jen Frost
Author spotlight

Jen Frost

Editor at Professional Adviser

More on Your profession

Wren Sterling adds £900m AUM with London-based IFA acquisition

Wren Sterling adds £900m AUM with London-based IFA acquisition

Evans Hart brings nearly 2,500 clients to the group

Sahar Nazir
clock 12 December 2025 • 2 min read
Demand for entry-level talent forces expansion of Nucleus-backed We Are Change scheme

Demand for entry-level talent forces expansion of Nucleus-backed We Are Change scheme

Foundation reports rising demand for entry-level routes into financial services

Sahar Nazir
clock 12 December 2025 • 2 min read
'Mounting anxiety' from Autumn Budget leading to more financial advice enquiries

'Mounting anxiety' from Autumn Budget leading to more financial advice enquiries

Enquiries for financial advice up by nearly a quarter following Budget

Sahar Nazir
clock 11 December 2025 • 1 min read