New Tax on UK School Fees Prompts Demand for Financial Advice

For a certain set of British parents, it’s yet another worry as the summer slinks by and a new academic year approaches: school fees are poised to surge.

In recent weeks, Chancellor of the Exchequer Rachel Reeves confirmed that the new Labour government will move forward with a widely telegraphed value-added tax of 20% on private-school fees. The VAT will be levied from the beginning of 2025, leaving many wondering if and how they will be able to send their children to private schools.

Financial advisers across the UK said they’ve been giving clients counsel ranging from using pension contributions ...