The Court of Appeal on Friday dismissed a legal challenge brought by private schools and parents against the Labour government’s decision to apply a 20 per cent Value Added Tax (VAT) to independent school tuition fees, a policy first implemented in January 2025. Three senior judges rejected arguments that the VAT levy breached human rights laws, upholding a previous ruling from the High Court in June of last year.
The claimants, including religious schools, pupils, and their parents, had argued that the imposition of VAT rendered faith-based education financially inaccessible and violated their rights. They contended that the specific form of faith-based education they sought was unavailable within the state system. Bruno Quintavalle, representing Emmanuel School in Derby and other Christian institutions, argued in court submissions that the VAT would not merely reduce school income but would lead to their closure.
The court, however, ruled that the VAT constituted a financial consequence, not a denial of access to education, and that parents retained the option of home schooling. The 44-page ruling explicitly stated that the policy did not infringe the right to education, as alternative lawful arrangements remained available. Judges emphasized that parents were not legally obligated to continue sending their children to independent schools.
The government introduced the VAT charge as part of a broader fiscal package, estimating it will generate £1.8 billion annually by 2029/30, intended to bolster funding for state schools. According to the Independent Schools Council, over 100 independent schools have closed since the policy’s implementation.
Despite the setback, the claimants have indicated their intention to seek permission to appeal to the Supreme Court. Caroline Santer, headteacher of The King’s School in Hampshire, stated, “Christian schools like ours exist to serve communities, offering education shaped by faith and values. VAT is dismantling decades of careful work and putting schools on the brink of closure. We will continue to stand with our families and pursue this all the way to the Supreme Court.”
Treasury officials defended the policy, rejecting calls for exemptions for lower-cost schools, arguing that such carve-outs would create disparities within the sector and incentivize artificial fee suppression. The Christian Legal Centre, which supported four of the schools involved in the case, confirmed the intention to appeal.
