New Tax on UK School Fees Prompts Demand for Financial Advice

For a certain set of British parents, it’s yet another worry as the summer slinks by and a new academic year approaches: school fees are poised to surge.

In recent weeks, Chancellor of the Exchequer Rachel Reeves confirmed that the new Labour government will move forward with a widely telegraphed value-added tax of 20% on private-school fees. The VAT will be levied from the beginning of 2025, leaving many wondering if and how they will be able to send their children to private schools.