VAT on London private schools in 2025

VAT on London private schools in 2025

The government confirmed in October 2024 that it was scrapping tax breaks for private schools from 2025: “We’re removing the exemption so that 20% VAT will be added to education and boarding fees charged by private schools from January.”

With the financial goalposts suddenly moved, parents planning to send their child to private school have had to reassess whether they can still afford it. If your family is relocating to the UK from overseas, you might also want to explore this guide to family immigration on our sister site. It covers the essentials of bringing your family to the UK.

Let’s explore how these autonomous institutions have chosen to manage their exposure to VAT since the exemption to private school fees was removed.

What you’ll learn in this quick guide

• How private schools are choosing to pass on VAT to parents
• Examples of private schools’ new fee structures
• How the VAT levy is impacting the education landscape

VAT-fuelled fee hikes

Private schools have adopted different approaches to covering the cost of the new tax levy, but one thing is guaranteed wherever you’re considering sending your child: fees have risen. Here are two high-profile examples.

• Prestigious Eton College has raised its fees by a fifth in response, with annual fees increasing from £52,749 to about £63,000.
• Winchester College has raised fees by 10% for non-bursary families, meaning boarding fees will rise by over £5,000 per year, and day fees will increase by almost £4,000. The school will absorb the remaining 10% as a temporary measure – leaving a potential further rise on the table.
• The Girls’ Day School Trust – the largest private girls’ school trust – which represents 23 private schools in England, including Wimbledon High School and Shrewsbury High School, hiked fees by 12% and will absorb the rest.

Some private schools hiked their fees in September 2024 in anticipation of the VAT raid. This allowed them to avoid increasing fees twice during the academic year, as fees are usually raised each September to factor in rising costs.

Fee hikes exceed government estimates

Upon announcing the tax levy, the government indicated it did not expect schools to pass on the full 20% to parents, indicating fees were likely to increase by around 10% overall.

However, research suggests the government has underestimated the impact of the policy, with one in five private schools in England, Scotland and Wales passing on the full rate. Meanwhile, four in five schools have passed on a lower percentage of the tax by offsetting other items to absorb the rest of the cost – the majority of which have increased fees by 15% or more.

If a 15% increase is applied to the average national annual fees for a day school of £18,064, they increase by £2,710 to £20,774.

No exodus to the state sector

The government’s addition of VAT on private school fees was met with predictions of a wave of pupils moving from private schools to the state sector. For example, former finance minister Jeremy Hunt estimated that up to 90,000 children could flood the state sector in the wake of a 20% VAT charge.

Initial figures from councils in England have disproved this, with most seeing no impact on applications to start at state secondary schools. Consequently, forecasts of widespread shortages of state school places have also fallen flat.

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Please note that the the fees we indicate above exclude VAT (Value Added Tax), currently at 20%. You should expect to pay an additional 20% in VAT on fees for all UK private schools from 1st January 2025.

State schools in UK are free to attend, so you will not have any fees to pay.

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Frequently asked questions on VAT and private schools in London

> When did the VAT on private school fees take effect?

The standard 20% VAT rate will be added to private school tuition and boarding fees from 1 January 2025. Any fees paid from 29 July 2024 relating to terms commencing on or after 1 January 2025 will also be subject to VAT.

> How will the government use the funds generated from VAT on private school fees?

The policy is forecast to generate approximately £1.725 billion annually, which will contribute to funding education priorities in state schools.

> Are there any exemptions to this VAT policy?

Exemptions were considered, such as for students with special educational needs without EHCPs, but the government decided against them due to projected revenue losses and administrative complexities.

Other resources

• What the private school fees cover and don’t cover: read the article here
• The cheapest private schools in London: read the article here
• Private school cost in London: what you can expect to pay: : read the article here

Consult with Simply London

Our schools experts can provide personalised guidance and support on the private school admissions process. Using their knowledge and experience, they can help you select and apply for the best and most suitable private schools for your child.

Contact us today, or schedule a free call with us here to discuss how we can help you to find your ideal school.

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Article published 21st April 2025, updated August 2025.