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Labour explored retroactive tax on private school fees

Headmasters say some parents are paying for years of education upfront to avoid being caught by potential measure
In 2021, Labour’s leader said the party would strip private schools of exemptions from paying VAT and impose business rates if it won the next election

Labour explored a move to impose sales tax retroactively on private school fees to stop parents avoiding the levy by paying for years of education upfront, according to people briefed on internal discussions.

Some wealthier parents are paying several years of school fees in advance to get ahead of Sir Keir Starmer’s plan to impose 20 per cent VAT on private education, headmasters told the Financial Times.

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