The Court of Appeal has dismissed a legal challenge against the government's policy of applying VAT to private school fees, ruling that it does not breach human rights law. The decision, handed down on Friday, upholds a previous High Court ruling from June last year.
The challenge was brought by several schools, pupils, and parents, who argued that the 20% VAT levy, which took effect on 1 January last year, interfered with their rights under the European Convention on Human Rights. They claimed the tax made private education unaffordable for some families, particularly those with religious convictions.
In a 44-page judgment, Sir Geoffrey Vos, Lord Justice Singh, and Lady Justice Falk found that the government had provided reasonable grounds for not exempting low-cost private schools from VAT. They noted that while the measure may have a serious impact on some families, parents still have the option of home schooling if state education is not acceptable.
Bruno Quintavalle, representing Emmanuel School in Derby and a group of Christian schools, argued that the High Court was wrong to find no interference with property rights and that the tax would render some schools unviable. However, Sir James Eadie KC, for the Treasury, HMRC, and the Department for Education, countered that VAT on an optional service does not interfere with property rights, especially since free state education is available.
The court also rejected claims that the measure impaired the right to an effective education, stating that Parliament should be given a broad margin of discretion in such policy decisions.
