Court of appeal dismisses private schools’ challenge over VAT policy

The measure, which came into effect on 1 January 2025, removes the long-standing tax break for private schools. The government estimates the change will raise £1.8bn annually by 2029/30, funding additional teachers and resources in state schools across England.

The case was originally brought before the High Court last year through three separate claims from families of children with special educational needs and disabilities (SEND), pupils attending single-sex schools, and those enrolled in low-fee faith schools. Although the High Court acknowledged that the policy could negatively affect certain groups, it concluded that the broader public benefit outweighed those impacts.

The group representing low-paying faith schools appealed the decision, arguing the VAT policy was discriminatory and interfered with families’ rights to educate their children according to their religious beliefs.

However, in Friday’s ruling, judges Sir Geoffrey Vos, Lord Justice Singh and Lady Justice Falk upheld the earlier decision. While they recognized the policy could have “a serious impact” on families unable to afford private education aligned with their religious convictions, they noted that home schooling remained an alternative if state education was unacceptable.

Government lawyers maintained throughout the proceedings that parents remain free to choose private schooling or home education if they wish to opt out of the state-funded system.

Caroline Santer, head teacher of a small private school in Hampshire, previously told the BBC she felt compelled to challenge the decision, arguing that “no other country taxes education in this way.”

Andrea Williams, chief executive of the Christian Legal Centre, said the group intended to continue pursuing the matter in the courts, emphasizing that not all families are in a position to home educate.

A government spokesperson welcomed the ruling, stating that ending tax breaks for private schools would support the 94% of children educated in the state sector and help strengthen public services.

The schools are now expected to seek permission to appeal the case to the Supreme Court.