Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Labour to Close VAT Loophole on Private School Fees

by June 27, 2024
June 27, 2024
Labour to Close VAT Loophole on Private School Fees

Labour has announced plans to prevent parents from pre-paying private school fees in an attempt to dodge the forthcoming VAT increase if the party wins the general election on July 4.

Senior Labour sources confirmed to The Telegraph that anti-forestalling legislation will be introduced to stop pre-payments on school fees before the VAT comes into effect.

Rachel Reeves, Labour’s shadow chancellor, stated that the plan to introduce a 20% VAT on private school fees will be included in her first budget, anticipated in September if Labour wins the election. Although the actual VAT is expected to be implemented by September next year, the anti-forestalling legislation would ensure that any fees paid in advance for education provided after the VAT comes into force will still be subject to the tax.

This move aims to close a loophole where some schools encourage parents to pay several years’ fees upfront, often offering discounts as much as 5%. Labour’s approach is modeled after a similar tax strategy used by former Chancellor George Osborne in 2010.

Bridget Phillipson, Labour’s shadow education secretary, noted that the exact timing of the VAT implementation depends on the parliamentary process but reiterated the party’s commitment to act swiftly. She emphasized that private schools have had ample time to prepare for these changes.

Labour believes this measure could generate up to £1.7 billion, which would be invested in state education to recruit 6,500 teachers, 8,500 mental health specialists, and 1,000 careers advisers, among other initiatives.

While some private schools have updated their policies to warn parents about the potential for future VAT charges, tax experts like Mike Warburton caution that the new legislation could prove complex for both schools and parents.

Labour’s determination to close this loophole reflects a broader effort to ensure that tax policies benefit the wider public, particularly in enhancing state education opportunities.

Read more:
Labour to Close VAT Loophole on Private School Fees

0
FacebookTwitterGoogle +Pinterest
previous post
Labour Could Cut Taxes by £16bn, Say Economists
next post
TAG, You’re It! Rotation Away From Semiconductors Benefiting These Stocks

You may also like

Discovering the 5 Most Reliable Online Exam Help...

February 26, 2024

UK inflation rises to 2.6% as interest rate...

December 18, 2024

Windfall for group that sacked 800 P&O workers

March 27, 2023

Give yourself a break: You deserve it

December 17, 2024

Google faces pressure to sell Chrome browser amid...

November 19, 2024

David Rocker: Insights from a Global Business Leader...

August 9, 2024

UK debt could triple to 300% of GDP...

September 13, 2024

Two-thirds of UK workers with long Covid have...

March 27, 2023

Cost of living crisis and Royal Mail strikes...

December 8, 2022

Average UK worker £200 a week worse off...

May 8, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Good Riddance to the Penny

      June 5, 2025
    • Oracle Fusion Testing: The UK Leader’s Playbook for Automation

      June 5, 2025
    • Blue state Republicans threaten rebellion if Senate changes key provision in Trump’s ‘big, beautiful bill’

      June 5, 2025
    • Ricketts, Fetterman team up for crackdown on China’s attempts to purchase US farmland

      June 5, 2025
    • Hamas working to ‘sabotage’ Trump-backed aid group with ‘fake news’: Israeli official

      June 5, 2025
    • Longtime Trump loyalist flips on GOP’s ‘big, beautiful bill’

      June 5, 2025

    Categories

    • Business (8,148)
    • Investing (2,009)
    • Politics (15,529)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved