UK to Impose 20% VAT on Private School Fees Starting January 2025
New tax expected to affect up to 40,000 students, but Hong Kong families remain largely unaffected, experts say.
- The UK government will implement a 20% VAT on private school fees from January 1, 2025.
- The tax is anticipated to drive some students from private to state schools, with up to 40,000 affected.
- Hong Kong education consultants believe the VAT will not significantly impact Hong Kong families due to their financial readiness.
- The government expects minimal disruption to the state education sector despite potential shifts in student populations.
- Private schools may face budget cuts or phased fee increases to manage the additional costs.