The UK Court of Appeal confirmed that a 20% VAT applies to private school fees, rejecting a challenge by Christian schools and parents. The ruling states there is no legal prohibition on taxing education and allows the coalition to seek a Supreme Court appeal. The decision threatens the viability of low‑cost faith‑based schools.
A 20% VAT rate applies to private school fees in the UK.
The Court of Appeal upheld the VAT on 28 February 2026.
The Court of Appeal ruled that there is no legal prohibition on taxing education.
The ruling threatens the viability of low‑cost Christian schools, as the 20% VAT increases fees and may lead to closures.
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Blackstone Chambers · about 15 hours ago
The Court of Appeal upheld the Finance Act 2025’s removal of the VAT exemption for private school fees, ruling the measure compatible with the European Convention on Human Rights. The decision confirms that low‑cost private schools are subject to VAT and that the measure does not interfere with property rights.
The Independent · about 15 hours ago
The Court of Appeal dismissed an appeal challenging the 20% VAT on private school fees, upholding the Treasury’s position that the measure is lawful and necessary. The policy, which took effect on 1 January 2025, was defended as essential to avoid serious detrimental consequences for low‑cost private schools. The High Court had previously dismissed the challenge in June 2025.
Crowe UK · 2 days ago
Crowe UK outlines five key VAT and tax risks and opportunities for hospice charities, covering corporation tax on non‑primary purpose trading, Gift Aid compliance, fundraising event exemptions, building project VAT relief, and upcoming investment rules effective April 2026. The article highlights practical compliance steps and recent court rulings that may affect hospice operations.
UK GOV · 3 days ago
The UK guidance explains the special procedure for outward processing, which allows goods to be temporarily exported from the UK for repair or processing. It outlines the rules, application process, authorisation, and duty calculation for such movements, covering both the UK and EU/Northern Ireland contexts.
UK Government · 9 days ago
HMRC’s guidance explains that intermediaries can register for the Import One‑Stop Shop (IOSS) scheme from 1 April 2026 and must submit a monthly IOSS VAT return on behalf of each client. The return must capture VAT on low‑value imports to EU and Northern Ireland consumers, use ECB exchange rates, and requires nil returns if no sales occur. Intermediaries must also keep 10‑year records and can correct returns within three years.
Law360 · 10 days ago
A London appeals court dismissed a UK telecommunications provider’s bid to recover £51.1 million in VAT payments, agreeing with a lower court that the VAT is owed when the provider supplied services. The decision confirms the provider cannot recover the VAT paid on its telecom services.
