European embassies in London are lobbying the UK government to exempt international schools from the incoming 20 per cent VAT charge on private education.
The removal of the current VAT exemption on private school fees is set to come into force in January 2025. This has triggered a backlash from European countries that fund international schools in the UK, who argue there is no such tax imposed on British independent schools abroad.
Embassies fear the new VAT policy will make pupil fees unaffordable for many of their UK-based employees and put a strain on diplomatic ties. The UK government estimates the move will raise up to £1.5bn for investment in state schools, including on recruiting 6,500 teachers.
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