Private Education: VAT
The question
To ask the Chancellor of the Exchequer, whether she has made a comparative assessment of (a) boarding departments in state schools in England and (b) grant aided schools in Northern Ireland, in the context of the introduction of VAT on independent schools.
Answered by James Murray
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This will also apply to boarding services provided by private schools.
Boarding at state schools is provided to parents at cost and is closely related to the supply of state education. The government therefore believes it is right that state boarding should continue to be exempt.
To ensure consistency in the VAT treatment of schools across the UK, as set out in the draft legislation published in July, where a school charges for the full-time education of children of compulsory school age and/or full-time education suitable for the requirements of 16-19 year olds, it will be within scope of this policy. All education, vocational training and boarding services provided by schools within scope of this policy will be subject to 20% VAT from January 2025. This is in line with the principles set out in the technical note published in July. The draft legislation and technical note can be found online here:
HM Treasury have been engaging closely with the Northern Ireland Executive to understand how different schools in Northern Ireland will be impacted by this policy.
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