Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the VAT status is of further education colleges.

Education services supplied by an “eligible body” are exempt from VAT. For VAT purposes, an “eligible body” broadly refers to most regulated, publicly funded, or not-for-profit education providers. This means no VAT is charged on supplies of education made by further education colleges, nor are further education colleges able to recover the VAT they have incurred on their expenditure.

We are ending the VAT exemption for private schools. The government will introduce 20% VAT on education and boarding services provided for a charge from 1 January 2025. This will include education and vocational training provided either at sixth forms attached to private schools or stand-alone private sixth form colleges. However, education and vocational training provided by further education colleges will not be subject to VAT.