Consultation Response: VAT on Private School Fees & Removing Charitable Rates Relief for Private Schools

We have submitted a response to the Government’s consultation on the removal of the VAT exemption for private school fees.

Due to a variety of challenges facing Muslim students and families within state education, Muslim schools play an important role in allowing young Muslims from disadvantaged backgrounds to achieve their potential.

Consequently, amongst Muslim communities, there is significant concern that the introduction of VAT on private school fees and the removal of charitable rates relief will disproportionately impact smaller faith schools and could lead to the closure of a number of these schools, resulting in upheaval for families that rely upon them.

Ultimately, we recommend that the draft Finance Bill Measures be amended to include thresholds based on a tuition fee cap at between £5,000 – £10,000, thereby ensuring that smaller schools are not disproportionately affected. A VAT exemption for institutions charging less than this amount would help mitigate the impact on smaller faith schools which provide a vital service to diverse communities.

Read the full response: