Measures affecting VAT announced at Autumn Budget 2024 include confirmation of the removal of the VAT exemption on private school fees.

Budget 24 VAT

The Chancellor, Rachel Reeves announced the following:

  • The VAT exemption on private school fees will be removed from 1 January 2025.
  • A response to the consultation on the VAT treatment of private hire vehicle services will be made in due course.

VAT on private schools (previously announced)

From 1 January 2025:

  • Legislation in Finance Bill 2024-25 will remove the VAT exemption on private school fees.  
  • All education services and vocational training provided by a private school or connected person in the UK for a charge will be subject to VAT at the standard rate of 20%. This will also apply to boarding services provided by private schools. 
  • Pre-payments of fees or boarding services on or after 29 July 2024 that relate to terms starting after 1 January 2025 will also be subject to VAT at the standard rate.
  • Following a technical consultation on the draft legislation, a government response was published in the Autumn Budget 2024.

VAT treatment of private hire vehicles

  • The government is considering the responses to the recent consultation on the VAT treatment of private hire vehicle services and the impact of the recent Court of Appeal judgment. It will respond to the consultation in due course.

 

Back to Autumn Budget 2024

Useful guides on this topic

Autumn Budget 2024: At a glance
Our At a glance view to the Autumn Budget 2024

Our Autumn Budget 2024: Live Speech highlights
Our live feed summary of the highlights of the Chancellor's Autumn Budget speech.

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