Autumn Budget 24: Labour pushes forwards with private school fees VAT

Change introduces 'new challenges' for families

Jen Frost
clock • 4 min read

Go-live date of 1 January 2025 confirmed in Autumn Budget.

Under the new rules, independent school fees will be subject to VAT at the standard rate of 20%. Private schools will also face a removal of business rate relief from April next year. These and tax avoidance measures are expected to raise over £9bn, Reeves said. "From a financial planning perspective, this change introduces new challenges for families relying on private education," said Quilter tax and financial planning expert Shaun Moore. "Adding VAT could significantly increase school fees, with the average cost for a day pupil likely to rise by around £3,100 per year." The gove...

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