VAT on Private School Fees
Policy Paper
15 November 2024
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Responsible organisation:
HM Treasury
Summary
This policy paper outlines the UK Government's plan to introduce VAT on private school fees, with the primary objective of raising additional revenue for public services such as education and healthcare. The proposal aims to align private schools with other sectors that are subject to standard VAT rates, ensuring a fair and consistent tax framework. The government estimates that this policy could generate an additional £1.5 billion annually.
Key Outcomes
VAT Application: Introduce standard VAT on private school fees to generate an estimated £1.5 billion annually.
Phased Implementation: Gradually roll out the VAT policy to allow families and schools to adjust.
Public Education Investment: Reinvest the additional revenue in state schools to improve facilities and teacher pay.
Support for Disadvantaged Students: Protect access to private schools for low-income families through targeted exemptions or bursary support.
Policy Alignment: Establish a fair tax framework across sectors, addressing long-standing inequalities in the tax treatment of private schools.
Keywords:
VAT
private school fees
school fees
education
HM Treasury
Summary
This policy paper outlines the UK Government's plan to introduce VAT on private school fees, with the primary objective of raising additional revenue for public services such as education and healthcare. The proposal aims to align private schools with other sectors that are subject to standard VAT rates, ensuring a fair and consistent tax framework. The government estimates that this policy could generate an additional £1.5 billion annually.
Key Outcomes
VAT Application: Introduce standard VAT on private school fees to generate an estimated £1.5 billion annually.
Phased Implementation: Gradually roll out the VAT policy to allow families and schools to adjust.
Public Education Investment: Reinvest the additional revenue in state schools to improve facilities and teacher pay.
Support for Disadvantaged Students: Protect access to private schools for low-income families through targeted exemptions or bursary support.
Policy Alignment: Establish a fair tax framework across sectors, addressing long-standing inequalities in the tax treatment of private schools.
Keywords:
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