Changes to VAT treatment of private school fees

It has been many years since the VAT rate has been changed on a supply of goods or services that had a significant impact on the UK economy. Note my use of the word ‘significant’ because the previous government’s decision to reduce the VAT rate from 20% to zero on period pants did not really whet the taste buds or trouble the front pages of the newspapers. Definitely not.

However there is no doubt that the decision to add 20% VAT on private school fees and boarding charges from 1 January 2025 – they will no longer be exempt under VATA 1994 Sch 9 Group 6 – is a massive policy measure and deserves our full attention. It is the equivalent of an exhausting 5am workout in the post-Brexit world of the nation’s favourite tax and experts are closely studying the draft legislation and technical guidance issued...