Court of Appeal dismisses school's VAT challenge
A group of private schools, pupils and parents have lost a Court of Appeal challenge over VAT on school fees
In their 44-page judgment, Sir Geoffrey Vos, Lord Justice Singh and Lady Justice Falk stated that the Government's decision not to exempt low-cost private schools from VAT was justified, warning that exclusion “would have serious detrimental consequences”. They acknowledged the potential impact on families who might struggle to afford private education aligned with their religious beliefs, but emphasised that home schooling remains an option if free education in the state sector does not meet their needs.
Ane Vernon, a partner at the law firm Payne Hicks Beach, who specializes in education and regulatory disputes, commented on the disappointing outcome for many parents and the independent school sector, noting that the policy was a clear manifesto commitment, and that “legal challenges to taxation measures are notoriously difficult”. She highlighted the significant effect of VAT introduction on independent schools, particularly smaller ones, which has resulted in many closures and reduced parental choice, especially for families seeking faith-based education.
Vernon further explained that while the judge’s suggestion of home schooling offers a theoretical alternative, it may lead to frustration for parents who find it impractical compared to the educational environment they have chosen for their children.
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