Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 8 November to Question 11947 on Armed Forces: Private Education, whether the decision to not offer any exemptions from the VAT policy for service families included an assessment of the exemption of US personnel whose children attend British independent schools.

The Government greatly values the contribution of our serving military personnel. The Ministry of Defence has increased the funding allocated to the Continuity of Education Allowance (CEA) to account for the impact of any private school fee increases on the proportion of fees covered by the CEA in line with how the allowance normally operates. The changes mean that UK military families with a child at a mainstream boarding school can now claim over £30,000 per year.

US personnel do not receive funding from the UK Government for their school places. They can only claim back the VAT element of fees, under a scheme that entitles UK military personnel to reciprocal reliefs when visiting other NATO countries. The NATO Status of Forces Agreement (SOFA) means that visiting NATO personnel have access to Visiting Forces Relief (VFR), for example the VAT free purchase scheme which provides relief on goods and services to US personnel in the UK.