Legal challenge on the introduction of VAT on private school fees

26 March 2025| CATEGORIES: judicial review, Private school fees, VAT case| TAGS:

A judicial review case challenging the government’s decision to impose VAT on the provision of education by independent schools will take place in the High Court next week from 1 to 3 April.

As of 1 January, private school fees in the UK, including tuition and boarding, are subject to 20 per cent VAT.  See our earlier blog articles here and here for details of the changes introduced.

The UK is the only European country to charge VAT on private school fees.

What are the arguments in the case?

Six representative families supported by the Independent Schools Council (ISC) argue that taxing education breaches the right to education guaranteed by the European Convention on Human Rights (ECHR) and that the policy’s impact is disproportionate on particular groups of pupil.

They argue that it threatens access to education for children with complex special education needs and disabilities (SEND), those seeking religious or philosophical-based education, those requiring single-sex education, and foreign nationals needing curriculum continuity.

The specific arguments are that the policy contravenes Article 2 of the First Protocol (right to education) of the ECHR, both on its own and when read in conjunction with Article 14 (protection from discrimination).

The formal defendant in the case is the Chancellor of the Exchequer, with HMRC as an interested party and the Department for Education as an intervener.

What remedy is being sought?

The claimants seek a declaration of incompatibility, meaning the Court would find the legislation incompatible with human rights law.

If the challenge is successful, the government would need to decide whether to amend or withdraw the policy. They could also appeal the decision.