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Private schools lose legal challenge over VAT changes

Private schools lose legal challenge over VAT changes

Summary

A group of private schools lost their legal challenge against the UK government's decision to charge VAT on their fees. The Court of Appeal ruled that while the change might negatively affect some families, it would help fund more teachers in state schools.

Key Facts

  • The UK government removed the VAT exemption from private school fees starting on January 1, 2025.
  • The Court of Appeal dismissed the legal challenge by private schools against this VAT change.
  • The policy aims to raise £1.8 billion a year by 2029/30, which will fund additional teachers in state schools.
  • Families of low-paying faith schools claimed the policy was discriminatory but were told home schooling was an option.
  • The court acknowledged a negative impact on groups like children in faith schools and those with special educational needs.
  • The schools plan to seek permission to appeal to the Supreme Court.
  • A small private school headteacher expressed concerns over the taxation of education.
  • The Christian Legal Centre indicates they will continue legal efforts despite the ruling.

Source Information