CIOT/IFS online debate: Should VAT be charged on private school fees?

Watch the event here.

The Labour Party intends to remove the exemption from VAT for independent school fees if it wins the general election. It would also end business rates relief for independent schools.

In this debate we explored how private education should be taxed in principle and practice. What are the principled arguments for and against taxing private education? How would a change in tax treatment affect pupils, parents, schools, government revenue and social mobility? In practice, how would VAT and business rates be applied to independent schools and what difficulties might arise?

Our Panel:

• Stuart Adam, Senior Research Economist at the Institute for Fiscal Studies
• Sam Freedman, Senior Fellow at the Institute for Government and Senior Adviser to Ark Schools
• Julie Robinson, Chief Executive of the Independent Schools Council
• Kerry Sykes, Director of Big for Tax and Technical Adviser to the Charity Tax Group

This event was chaired by Charlotte Barbour, Deputy President of the Chartered Institute of Taxation.