Private school fees and VAT: what UK families pay now

Quick answer: how much VAT do UK private school fees carry now? Since 1 January 2025, education and boarding at UK private schools carry VAT at 20%. The ISC Census 2026 puts the average London day fee at £7,580 a term before VAT, so about £9,096 with it. At Halcyon London International School, 2026-27 Grade 6 to 9 tuition is £34,200 plus £6,840 VAT.

Last reviewed: November 2026 by David from ISA. Fee ranges are indicative; always confirm with the school.

Key takeaways

VAT at the standard rate of 20% has applied to education and boarding supplied by UK private schools since 1 January 2025, according to HMRC.
Fees paid from 29 July 2024 for terms starting in January 2025 or later were also taxed, so paying early did not avoid VAT.
The ISC Census 2026 records average day school fees of £6,226 a term before VAT, and £7,580 in London, after a 4.4% rise on January 2025.
Nursery classes made up wholly or almost wholly of children below compulsory school age remain exempt, under HMRC guidance updated in February 2026.
The High Court dismissed the legal challenges on 13 June 2025 and the Court of Appeal dismissed the appeals on 27 February 2026.

For families comparing schools in Britain, private school fees and VAT are now a single budgeting question. The 20% charge has been on invoices for almost two years and the legal challenges against it have failed in two courts. What matters now is the real figure on the bill and which lines carry VAT.

The effect shows in pupil numbers. The Independent Schools Council counted 526,611 pupils in its member schools in January 2026, 3.5% fewer than a year earlier, and the number of new pupils fell by 5.6%.

When did VAT start on private school fees, and how much is it?

VAT at 20% has applied since 1 January 2025 to all education and vocational training that a private school in the UK provides for a charge, and to the boarding services it provides. The rule covers the whole UK and does not depend on the curriculum or on where the family lives.

England added a second measure: from 1 April 2025, private schools that are charities lost eligibility for business rates charitable relief. That cost lands on the school, but it is one reason fee rises did not stop at the VAT itself.

The 29 July 2024 cut-off. Paying years ahead did not help: fees paid from 29 July 2024 relating to the term starting in January 2025 onwards are subject to VAT.

What carries VAT and what does not?

Tuition, boarding and compulsory registration fees carry VAT; several separately charged services do not. HMRC's guidance draws these lines:

Tuition, boarding and registration: standard-rated, including application fees a pupil must pay to attend.
Meals and transport: inside one package price, the whole package is taxed. Charged separately, they are separate supplies with their own VAT treatment, and HMRC says school meals may then be exempt as closely related services.
Exam entry fees: money passed straight to an exam board can normally be treated as a disbursement (VAT Notice 701/30).
Nursery classes: exempt when wholly or almost wholly made up of children below compulsory school age; HMRC's example is a class where 90% are under that age.
Clubs: childcare before and after school is exempt; educational extracurricular activities are taxed.
Bursaries: an external bursary does not reduce the VAT (HMRC's example taxes 100% of a fee that a 30% bursary helps pay); a bursary the school funds itself is outside the scope of VAT.
Special educational needs: where a local authority funds a place named in a pupil's education, health and care (EHC) plan, the school charges VAT and the authority reclaims it. Parents paying privately pay VAT.

How much do UK private schools cost now?

The latest ISC Census, taken in January 2026, puts the average day fee at £6,226 a term before VAT, and £7,580 in London.

School type	Average fee per term, excluding VAT	Per term with 20% VAT	Per year with VAT (3 terms)
Day schools, all regions	£6,226	£7,471	£22,414
Day schools, London	£7,580	£9,096	£27,288
Boarding, all regions	£14,980	£17,976	£53,928
Boarding, London	£16,352	£19,622	£58,867

Source: ISC Census and Annual Report 2026, tables 5.1 and A.7, average fees per term excluding VAT, January 2026; VAT columns are our calculation. Day fees run from £4,473 a term in the North West to £7,580 in London and rose 4.4% in a year before VAT.

What did the courts decide about VAT on school fees?

The challenges failed. On 13 June 2025 the Divisional Court granted permission for judicial review in three linked claims and dismissed all of them ([2025] EWHC 1467 (Admin)). The claimants included children with special educational needs, families seeking faith or single-sex schooling and families who said they needed a foreign curriculum.

On 27 February 2026 the Court of Appeal, led by the Master of the Rolls, dismissed the appeals ([2026] EWCA Civ 170). The Budget 2026 document, published on 28 October 2026, does not mention private school fees.

What it means for international schools in London

London's international schools quote fees before VAT, with VAT shown separately or VAT inclusive, so read the small print. Our guide to international school fees in London lists other extras.

Halcyon London International School

Halcyon, in Marylebone, teaches the IB Middle Years and Diploma programmes as a not-for-profit school. Its 2026-27 schedule shows VAT in its own column: £34,200 plus £6,840 for Grades 6 to 9, and £35,760 plus £7,152 for Grades 11 and 12. Tuition includes lunch, day trips and an annual residential trip, so they sit inside the taxed price, and the school charges no separate exam fees. New pupils add a £2,250 development fee plus VAT. Term 1 fees fell due on 1 June 2026, well before arrival.

EIFA International School London

EIFA, at 36 Portland Place, teaches in French and English from age 2 to 14. For 2026-27, Years 2 to 6 cost £8,142 a term before VAT and £9,770 with it, while Pre-Nursery and Nursery stay VAT exempt at £7,448. Reception is taxed, at £8,938 a term. Lunch (£515 a term) and a £50 trips fee carry no VAT.

TASIS England

TASIS England, a day and boarding school for ages 4 to 18 at Thorpe in Surrey, quotes fees including VAT: £37,170 for Grades 9 to 12 by day and £69,650 for full boarding in 2026-27. VAT is one sixth of a VAT-inclusive price, so roughly £11,608 of that boarding fee is tax. SAT, AP and IB exam costs are extra; our explainer on full and weekly boarding costs covers the rest.

For relocating families. If an employer pays, check whether the education allowance is a fixed sum agreed before 2025 or "fees as invoiced": a fixed sum now buys about one sixth less.

Worked example: one London fee with and without VAT

A new pupil entering Year 3 at EIFA in September 2026, on the school's published figures:

Tuition including VAT: £9,770 a term, so £29,310 a year, against £24,426 before VAT. The VAT share is about £4,884.
Lunch: £515 a term, £1,545 a year, no VAT.
Trips and enrichment: £50 a term, £150 a year, no VAT.
One-off charges: £360 administrative fee and £2,400 entrance fee, both including VAT.
First-year total: £33,765. Before VAT the same bill would have been £28,421, so VAT adds £5,344.

At the London ISC average of £7,580 a term, the same arithmetic gives £22,740 a year before VAT and £27,288 with it.

Questions to ask the school before you accept a place

Is the quoted fee before or after VAT, and is it the 2026-27 or the 2027-28 figure?
Which items are billed separately (lunch, transport, clubs, exams), and do they carry VAT?
Is any bursary funded by the school itself or by an outside body?
For a child with special educational needs, is a local authority funding the place through an EHC plan?
How much have fees risen since 2024, and what notice is needed to withdraw?

Compare schools in London

Compare curricula, locations and fee bands in our ranking of the best international schools in London.

Sources: HMRC guidance on VAT and private school fees (February 2026) and VAT Notice 701/30; HM Treasury policy paper; MHCLG note on business rates relief; ISC Census 2026; [2025] EWHC 1467 (Admin); [2026] EWCA Civ 170; 2026-27 fee schedules of Halcyon, EIFA and TASIS England.

More guides to schools in London

Frequently asked questions

Is VAT charged on boarding school fees in the UK?

Yes. Since 1 January 2025 boarding services provided by private schools carry VAT at 20%, the same rate as tuition, because HMRC treats board and lodging closely related to education as taxable. TASIS England, for example, quotes its 2026-27 full boarding fee for Grades 8 to 12 at £69,650 including VAT, of which roughly £11,608 is the tax.

Do international schools in London charge VAT on fees?

Yes, when they are private schools charging fees in the UK. The rule does not depend on the curriculum or on where the family comes from. Halcyon London International School lists £6,840 of VAT on 2026-27 Grade 6 to 9 tuition of £34,200, and EIFA International School London shows separate before-VAT and VAT-inclusive columns for each year group.

Can I avoid VAT by paying school fees in advance?

No. The government set a cut-off of 29 July 2024: fees paid from that date for terms starting in January 2025 or later are subject to VAT. Some schools still reward early payment, such as the 5% discount EIFA International School London offers on fees paid yearly in advance, but the amount you prepay already includes VAT.