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Taxing times for schools
Key points
- From 1 January 2025 20% VAT will be charged on private school fees and boarding charges.
- Anti-forestalling provisions have been introduced.
- Private schools will have taxable and exempt income from 1 January 2025 so will be partially exempt for input tax.
- Comments to: independentschools@hmtreasury.gov.uk.
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...
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