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

How Blockchain is Shaping the Future of Online...

March 20, 2025

Plans To Help Cut & Save On Energy...

October 24, 2022

UK classifies trade documents as ‘secret’ to shield...

April 17, 2025

Why SMEs won’t ditch Green intentions despite ongoing...

February 23, 2023

The perfect way to introduce language learning into...

October 31, 2022

Octopus Energy to Repay £3bn Taxpayer Support for...

June 22, 2024

Boots launches budget range as UK shoppers cut...

September 7, 2022

Hunt ‘brings back Sid’ as he announces public...

November 22, 2023

How To Unblock And Access Roobet From Anywhere...

March 28, 2023

Reeves insists government must ‘go further and faster’...

January 28, 2025

    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

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • 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