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  1. Private Schools
January 30, 2025

High Court to hear private school VAT legal challenge this April

In the earlier hearing, Lord Pannick KC, representing the ISC-backed claimants, successfully argued parents require clarity given the immediate financial implications of the policy, which took effect on January 1, 2025

By Suzanne Elliott

The legal battle over the government’s decision to impose VAT on private school fees is set to be heard in the High Court from 1 April to 3 April. The challenge, backed by the Independent Schools Council (ISC), will be led by six families contesting the introduction of VAT on education provided by independent primary and secondary schools.

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The case is filed against Chancellor Rachel Reeves. The claimants argue that the imposition of VAT on school fees is already having a significant impact, forcing families to reconsider their options. Representing a diverse group, including families with children in SEND, faith-based, bilingual, and girls-only schools, the claimants argue the policy disproportionately affects certain educational communities.

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Leading the legal challenge is Lord Pannick KC, who will argue that the VAT policy restricts access to independent education and violates the right to education under Article 2 of the First Protocol of the European Convention on Human Rights. He will also claim that the policy contravenes Article 14 of the Convention by causing unnecessary and discriminatory harm to specific groups of children. The claimants seek a declaration of incompatibility under section 4 of the Human Rights Act, asserting that amendments to the Value Added Tax Act 1994 conflict with ECHR protections.

Expedited court proceedings

The case is being heard on an expedited basis after a court decision this month in which Lord Pannick successfully argued the urgency of the case, citing the immediate impact of VAT on parents and students. The court also ruled that the ISC’s case, represented by law firm Kingsley Napley, would be combined with a separate legal action brought by Education Not Discrimination, represented by SinclairsLaw.

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Julie Robinson, CEO of the ISC, described the introduction of VAT on school fees as ‘an unprecedented tax on education’.

Pupils at Eton College hurry between lessons, March 1, 2004 wearing the school uniform of tailcoats and starched collars, in Eton, England. Dozens of the country's foremost independent schools are facing heavy fines if a government inquiry finds them guilty of operating a fee-fixing cartel.
The VAT exemption on private schools like Eton was lifted on 1 January 2025 / Shutterstock

‘The diversity within independent schools has been overlooked in the rush to implement this policy, leaving families and children to bear the brunt of its negative consequences,’ she said. Robinson added: ‘This legal action aims to protect their rights and ensure their choices in education are not unfairly restricted.’

In the earlier hearing, the High Court of England and Wales agreed to fast-track the legal action in response to Lord Pannick’s argument that parents require clarity given the immediate financial implications of the policy, which took effect on January 1, 2025.

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Government counsel opposed the request, seeking more time to review the evidence. However, Mr Justice Chamberlain dismissed these arguments and ruled that the case should proceed on an expedited basis.

Sophie Kemp, partner and Head of Public Law at Kingsley Napley, welcomed the decision at the time: ‘Mr Justice Chamberlain has agreed that our case will be heard on a “rolled-up” basis, meaning that both the permission stage and substantive arguments will be considered in a single hearing. This should help bring a resolution to the matter more swiftly.’

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