VAT on independent school fees: High Court dismisses legal challenge
Three separate claims had been brought, arguing that the change was discriminatory and in breach of human rights law. The claims covered children with special educational needs and disabilities (SEND), those attending single-sex schools, and those attending low-paying faith schools.
Some of the families had argued that they had no alternative schools in their area to meet the needs of their children with SEND, and that the introduction of VAT on independent school fees was "unprecedented" throughout Europe.
The Court agreed that the legislation did indeed interfere with some of the group's human rights. Despite this, it found that there is a "broad margin of discretion in deciding how to balance the interests of those adversely affected by the policy against the interests of others who may gain from public provision funded by the money it will raise". In summary, the High Court confirmed that Parliament has leeway in taxation and social policy, especially when implementing manifesto commitments. The Court also stated that the Government had gone through proper due process in implementing the change.
It is not known at this point whether this is the end of the road for the challenge. The Independent Schools Council, which represented some of the families, said it was carefully considering the Court's judgment and next steps. One independent school stated that it will “continue to challenge the legality of this policy". However, for the immediate future at least, the ruling signals that VAT on independent school fees is here to stay.
The Court agreed that the legislation did indeed interfere with some of the group's human rights. Despite this, it found that there is a "broad margin of discretion in deciding how to balance the interests of those adversely affected by the policy against the interests of others who may gain from public provision funded by the money it will raise". In summary, the High Court confirmed that Parliament has leeway in taxation and social policy, especially when implementing manifesto commitments. The Court also stated that the Government had gone through proper due process in implementing the change.
It is not known at this point whether this is the end of the road for the challenge. The Independent Schools Council, which represented some of the families, said it was carefully considering the Court's judgment and next steps. One independent school stated that it will “continue to challenge the legality of this policy". However, for the immediate future at least, the ruling signals that VAT on independent school fees is here to stay.
We are here to help
If you are an independent school and have any questions on the introduction of VAT on school fees, please don’t hesitate to get in touch. Azets’ specialist VAT team has been assisting many schools navigate the change and mitigate the impact.
