Boarding services provision in independent schools

Historically the provision of education by private schools qualified to be exempt from UK VAT. The exemption also extended to supplies closely related to the provision of education. To qualify as closely related the goods or services must be for the direct use of the student who is in receipt of the education or vocational training and the supply must be made by (or to) an eligible body such as a school or college. This extension to the VAT exemption meant that supplies such as boarding services catering and transport which would ordinarily be subject to VAT could also be exempted.

In July 2024 it was announced that with effect from 1 January 2025 the provision of education by private schools and the provision of board and lodging which is closely related to the provision of education will become subject...