First victory for Independent Schools in VAT legal challenge
In a significant development for independent schools, the High Court of England and Wales has ruled to fast-track a legal challenge against the government's decision to impose VAT on independent school fees
The challenge, initiated by six claimants supported by the Independent Schools Council (ISC), argues that the VAT policy, which took effect on 1 January 2025, will negatively impact parents and students. Lord Pannick KC, representing the claimants, argued for urgency, citing the immediate effects of VAT on school fees and the need for certainty.
Despite the government’s opposition, which called for more time to consider evidence, Mr Justice Chamberlain dismissed these arguments, deciding that the case should proceed without delay.
Key Remarks from the ISC and Legal Team
Julie Robinson, CEO of the ISC, welcomed the High Court's decision, stating: "This is an unprecedented tax on education and it is right that its compatibility with human rights law is tested. We are glad that the High Court has recognised the urgency of this case and we look forward to making our legal arguments as soon as possible."
Sophie Kemp, partner at Kingsley Napley and Head of Public Law, who is advising the claimants, explained: "Mr Justice Chamberlain has today agreed that our case will be heard on a 'rolled-up' basis, meaning the permission stage and substantive arguments can be dealt with in a combined hearing. This should help with an early resolution of the matter."
Next Steps in the Legal Challenge
The case, which is being brought against Chancellor Rachel Reeves as head of the Treasury, will proceed alongside a separate case being led by Education Not Discrimination and represented by SinclairsLaw. A hearing date is yet to be set for both legal challenges.
The High Court’s ruling has marked a key step in the ongoing battle over VAT on independent school fees, with potential implications for the future of private education in the UK.