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First victory for independent schools in VAT legal challenge

17 January 2025

Legal action challenging the government’s decision to levy VAT on independent school fees will be fast-tracked, the High Court of England and Wales has determined.

 In a court hearing this afternoon, Lord Pannick KC, acting on behalf of six claimants supported by the Independent Schools Council, argued that parents needed certainty given the effects of VAT were already being felt. This follows the implementation of the policy, which came into effect on 1 January 2025.

 Counsel representing the government opposed the request, asking for more time to consider the evidence. However, Mr Justice Chamberlain dismissed the government’s arguments and agreed that the case should be expedited. 

 Commenting on the court’s decision, Julie Robinson, CEO of the ISC, said: “This is an unprecedented tax on education and it is right that its compatibility with human rights law is tested. We are glad that the High Court has recognised the urgency of this case and we look forward to making our legal arguments as soon as is possible.”

 Kingsley Napley partner and Head of Public Law Sophie Kemp, who is advising the claimants, adds:  "Mr Justice Chamberlain has today agreed that our case will be heard on a 'rolled-up' basis meaning the permission stage and substantive arguments can be dealt with in a combined hearing. This should help with early resolution of the matter."

 A date is yet to be set for the case, which is being brought against Chancellor Rachel Reeves as head of the Treasury.

 At the same hearing, it was agreed that the ISC’s case, led by law firm Kingsley Napley, would be joined with the separate case being brought by Education Not Discrimination, represented by SinclairsLaw. 

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