Court of Appeal rejects Christian private schools’ VAT challenge

The Court of Appeal has rejected a legal challenge brought by Christian private schools and parents against the UK Government’s policy to apply 20% VAT to private school fees. The claimants argued that the policy would unlawfully discriminate against parents because it would force these schools to close and deprive them of providing a faith-based education for their children. A previous judgment from the High Court also rejected this challenge. Humanists UK, which wrote to the Chancellor of Exchequer urging her not to apply any faith-based carve-outs to the VAT policy, has welcomed this ruling. 

The appeal was in relation to the Government’s decision not to create a special exemption for certain schools — including low-cost faith schools — from VAT on fees. The Court of Appeal rejected the appeal on all grounds, finding that there is no general prohibition on taxing education and no right to state support for education of a particular type beyond what the state provides. Furthermore, the Court also argued that home education was a viable option for those parents unable to afford the fees and unwilling to send their children to state-funded schools. The group has announced its intention to apply for permission to appeal to the Supreme Court.

In a Westminster Hall debate on the impact of VAT on faith schools, which was held on 26 February, the Parliamentary Undersecretary of State for Early Education, Olivia Bailey MP, told MPs that the Government ‘understood that some parents make the decision to send their child to a private school because of its particular faith ethos’, but reiterated its position to apply VAT to all private schools. The Minister also reminded MPs that one-third of the state-school sector were faith schools.

Responding to the Court of Appeal ruling, Humanists UK’s Policy and Campaigns Manager Lewis Young said:

‘This is a sensible judgment and a clear reminder that education policy should be made for the public good, not shaped around special pleading from particular religious groups. As the Court of Appeal has stated, parents are free to choose private, faith-based schooling, but that doesn’t mean religious private schools should receive special tax treatment that other families and schools do not. We are pleased the Court has ruled against attempts to apply faith-based carve-outs to these schools.’