Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 2 August 2024 to Question 1651 on Private Education: VAT, whether independent Welsh language schools will be exempt from VAT.

The draft legislation set out the definition of private schools within the scope of this policy. This includes Welsh language schools if they provide full-time education for children of compulsory school age and/or full-time education for a fee to 16-19 year olds and are principally concerned with providing education suitable for that age range (for instance, a sixth form) for a charge.

All education, vocational training, and boarding provided by a private school for a charge will be within scope of this policy, including educational summer schools run by a private school. However, if the summer school purely consists of childcare and is not educational in nature, it will remain exempt from VAT, as welfare services are exempt from VAT. For VAT purposes, education means a course, lesson, instruction, or study in any subject (whether or not that subject is normally taught in schools, colleges, or universities), regardless of where and when it takes place. As well as academic subjects, this includes activities such as performing arts, physical training, sports, and arts & crafts

Summer schools run by third-party providers on a private school's premises are not impacted by these changes. Summer schools run by third-parties have always been subject to VAT if the provider was registered and the summer school didn't qualify for the welfare VAT exemption.

Based on the draft legislation, the degree to which a summer school consists of English language tuition does not affect its VAT treatment.

The final policy design will be confirmed at the Budget on 30 October.