Question to the Department for Education:

To ask the Secretary of State for Education, if she will make an assessment of the potential merits of enabling the financial contributions of independent schools to state academies to be offset against VAT liability.

The department understands that, in line with schools’ charitable objectives, private schools do not typically charge for partnership work, meaning it is outside the scope of VAT. Whilst the government keeps all tax policy under review, there are currently no plans for changes that would enable independent schools to offset any financial contributions made to state academies against their VAT liability.

Whilst developing these policies, the government has carefully considered the impact that they will have on pupils and their families across both the state and private sector, as well as the impact these policies will have on state and private schools. Following scrutiny of the government’s costing by the independent Office for Budget Responsibility, the government will confirm its approach to these reforms at the Budget on 30 October and set out its assessment of the expected impacts of these policy changes in the normal way.