- On 29 July 2024, the government announced the removal of VAT exemption for private school fees and boarding fees from 1 January 2025.
- Education services and vocational training supplied by a private school or a “connected person” for consideration will be subject to VAT at the standard rate of 20%, and the standard rate will also apply to boarding services that are “closely related” to such supplies.
- There was a consultation on the technical aspects of the policy and the draft legislation.
- Timing: VAT will apply from 1 January 2025. The consultation closed on 15 September 2024. The government issued a summary of responses to the consultation on 30 October 2024. The legislation giving effect to this measure was included in the Budget resolutions and given immediate statutory effect as of 30 October 2024.
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