Labour to charge VAT on private school fees but won't scrap charitable status
dailyrecord.co.ukLabour plans to charge VAT on private school fees but won't scrap their charitable status if it wins the general election.The party said it no longer has to stop private schools from being charities to charge 20 per cent VAT on fees and make them start paying business rates.The move contradicts comments made by Shadow Chancellor Rachel Reeves in 2021.
She said: “Here’s the truth: private schools are not charities. And so we will end that exemption and put that money straight into our state schools.
That is what a Labour government will do.”Keeping charitable status means the schools will still have some perks. They will still be able to claim gift aid on donations and not pay tax on annual profits, which must be reinvested in education.SNP leader Humza Yousaf and Scottish Labour leader Anas Sarwar both attended the private Hutcheson's Grammar School in Glasgow.
Former Prime Minister Tony Blair also attended the Edinburgh private school Fettes College.Private schools in Scotland lost their charity relief rates last year.
Read more on dailyrecord.co.uk