Welsh Government consults on plan to end tax break for independent schools
The Welsh Government has launched a consultation on plans to end a tax break for some fee-charging schools.
The move would withdraw charitable non-domestic rates relief from private schools from 1 April 2025.
The proposal seeks to bring independent schools with charitable status in line with other independent schools in Wales, for the purposes of non-domestic rates.
In Wales, private schools are registered as independent schools.
Tax relief
Finance Secretary Mark Drakeford said: “We believe that independent schools with charitable status in Wales should be treated in the same way as those which are not charities, which is why we are proposing removing this tax relief.
“It would bring Wales into line with Scotland and the UK Government is also planning to make similar changes in England.”
There are 83 independent schools registered in Wales; 17 receive charitable non-domestic rates relief worth around £1.3m every year.
The Welsh Government says the funding released by ending this tax relief would be available to support local public services.
The consultation sets out the Welsh Government’s proposal and asks for views.
It will run for 12 weeks from 23 September and responses are requested by 16 December 2024.
Support our Nation today
For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.
That assumes that the schools remain viable and don’t just close as so many have already. If they do then there will be increased demand for places in state schools at least from the day schools.
At least that should free up more teachers.
Puts them in the same position as state schools which oddly also pay business rates. So if they are not viable then fine, the parents may take more interest in the local schools and support them.
Can someone explain why businesses selling education should get tax breaks that are not given to businesses that sell other services?