Private Education: VAT
The question
To ask the Chancellor of the Exchequer, whether independent English Language schools will be exempt from VAT.
Answered by James Murray
As the Chancellor announced on 29 July, as of 1 January 2025, all education services and vocational training supplied by a private school in the UK for a charge will be subject to VAT at the standard rate of 20%. Boarding services closely related to such a supply will also be subject to VAT at 20%. Any fees paid from 29 July 2024 pertaining to the term starting in January 2025 onwards will be subject to VAT. Furthermore, where a school in England has charitable status, the government will legislate to remove their eligibility to business rates charitable rates relief. This is intended to take effect from April 2025, subject to Parliamentary passage.
The teaching of English as a foreign language will not be affected by these changes and will continue to be exempt from VAT.
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