Trinity Christian School in Reading closed after 13 years, citing the removal of VAT exemption on private school fees and rising business rates as the main reasons. The UK government introduced VAT on private school fees from 1 January 2025 at the standard 20% rate, expected to raise £1.8 billion a year by 2029/30. The school’s business rates increased to £35,000 from about £5,000, and its application for discretionary relief was denied.
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Energy Digital · about 7 hours ago
UK: New Prime Minister Andy Burnham will cut VAT on electricity bills from the start of October, exempting households in England, Scotland and Wales for six months. The measure will reduce average household bills by about £45 and cost the Treasury roughly £850m this financial year.
TaxResearch · 1 day ago
The UK will remove VAT from electricity bills from October, cutting average annual bills by about £45 per household. The move is expected to reduce tax revenue by roughly £1.1 billion, but critics argue it does not address underlying grid capacity issues.
Guardian · 1 day ago
The UK government will remove VAT from electricity bills for households in Great Britain from 1 October 2026, reducing the annual price cap by £45. Northern Ireland will retain the 5% VAT rate, and the cut does not apply to gas.
VatCalc · 1 day ago
The United Kingdom has announced that domestic electricity bills will be zero-rated from 1 October 2026, reducing the VAT rate from 5% to 0%. The measure is temporary, applying until 31 March 2027, and will be funded by cancelling the planned Digital ID programme.
The Independent · 2 days ago
The UK government will remove VAT from domestic electricity bills from 1 October 2026, cutting the rate from 5% to 0%. The change is expected to save households around £45 a year and will be funded by cancelling the Digital ID programme.
The Independent · 2 days ago
In the UK, the government announced an £850 million tax cut on energy bills, making electricity bills VAT free from 1 October 2026 in England, Scotland and Wales. Northern Ireland remains exempt because EU VAT rates apply under the Windsor Framework, preventing the cut from applying there.
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Key Takeaways
From 1 January 2025, private school fees became subject to VAT at the standard 20% rate.
The Department for Education estimates it will raise £1.8 billion a year by 2029/30.
The school’s business rates rose to £35,000 per year from around £5,000, making them unaffordable.
No, Reading Borough Council rejected the school's application for discretionary relief.
Primary source
Read the full article at BBCThis summary was published on VATfaqs.com on 26 March 2026. It relates to VAT developments in United Kingdom. The original source is BBC.
