On its face the new legislation imposing VAT on the provision of education by a private school seems straightforward – well put-together even. It takes little time to realise however that perhaps the Government should have taken a couple more passes (or listened more when consulting on the draft legislation) before freezing it in carbonite on 20 March 2025.
By way of example under VATA 1994 Sch 9 Part 3 item 3 (as introduced by FA 2025 s 47(2)(b)) VAT is now payable on the provision of ‘board and lodging which is closely related’ to the provision of education by a private school. What is ‘board’? Clearly there is little doubt what is referenced when the term appears on a black board outside a B&B in the Scottish Highlands but what does it mean for VAT (i.e. taxing) purposes? Does it have...
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On its face the new legislation imposing VAT on the provision of education by a private school seems straightforward – well put-together even. It takes little time to realise however that perhaps the Government should have taken a couple more passes (or listened more when consulting on the draft legislation) before freezing it in carbonite on 20 March 2025.
By way of example under VATA 1994 Sch 9 Part 3 item 3 (as introduced by FA 2025 s 47(2)(b)) VAT is now payable on the provision of ‘board and lodging which is closely related’ to the provision of education by a private school. What is ‘board’? Clearly there is little doubt what is referenced when the term appears on a black board outside a B&B in the Scottish Highlands but what does it mean for VAT (i.e. taxing) purposes? Does it have...
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