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

More on Your profession

Average pension transfer took just 11 days at tax year end

Average pension transfer took just 11 days at tax year end

Origo says transfer times decreased around tax year end with half taking seven days or less

Jasmine Urquhart
clock 17 June 2025 • 2 min read
Reeves eyes IHT U-turn as non-doms 'plan to leave'

Reeves eyes IHT U-turn as non-doms 'plan to leave'

‘Exodus’ fears continue to grow

Sahar Nazir
clock 17 June 2025 • 1 min read
'Not an adviser problem': Industry cites regulation as main advice gap cause

'Not an adviser problem': Industry cites regulation as main advice gap cause

‘The regulator caused it, they should fix it’

Isabel Baxter
clock 17 June 2025 • 2 min read