Parents of children attending private schools will still be required to pay VAT on tuition fees, following a High Court decision confirming that the tax does not infringe upon children’s human rights.
In April, an appeal was brought before the High Court by three groups, which included parents of children with special educational needs (SEN) as well as representatives from two religious communities.
The court has now ruled in favour of the Chancellor, permitting the government to apply a 20% VAT to private school fees.
Judges Dame Victoria Sharp, Lord Justice Guy Newey, and Sir Martin Daniel Chamberlain determined that the tax does not violate human rights, explaining that it “‘is imposed directly on the fees paid for the provision of educational and associated services by private schools’.”
They clarified that the rights of families and students “goes no further than the right of access to whatever educational system the state chooses to provide and the right to establish a private school.”
“‘They do not include any right to require the state to facilitate one’s child’s access to a private school, even if the parent’s reason for preferring a private school is a religious one.
‘Nor do they impose any general obligation on the state not to hinder access to private education.’”
While the claimants’ legal team argued that applying VAT would negatively affect children with specific educational needs, the court upheld the government’s position.
In addressing whether an exemption should apply to SEN students, the judges noted: “‘The principal justification for not creating an exemption for pupils with SEN but no EHCP is that to do so would be unfair to the 1.1 million children with SEN in the state sector.’”
Sophie Kemp, a partner at Kingsley Napley who represented the claimants, commented: “‘This is a disappointing decision for the claimants, who are carefully considering the court’s judgment.
‘It was important to challenge VAT on school fees, which both the government and the court recognised had a discriminatory impact on children at religious schools as well as significant impact on children with SEN.
‘The court felt that it was not able to interfere because of the leeway it must give to Parliament. Unfortunately, this doesn’t help the claimants, who must now weigh their options.’”
Although all three claims were rejected, the claimants have been given permission to seek a judicial review.
Julie Robinson, Chief Executive of the Independent Schools Council (ISC), remarked: “‘This is an unprecedented tax on education, and it was right that its compatibility with human rights law was tested.
‘The ISC is carefully considering the court’s judgment and next steps. Our focus remains on supporting schools, families and children.
‘We will continue to work to ensure the government is held to account over the negative impact this tax on education is having across independent and state schools.’”
According to the Treasury, the VAT on private school fees is expected to generate £1.8 billion in revenue, which will be allocated to hiring additional teachers in state schools.
