Christian schools win permission to appeal government’s VAT policy in landmark legal tax battle
15 October 2025 Issued by: Christian ConcernThe Court of Appeal has granted permission for a coalition of Christian schools, parents, and pupils to challenge the UK government’s controversial decision to impose VAT on private school fees, a policy that has already led to closures and widespread disruption across the independent education sector.
The appeal is being brought by headteachers and families from independent Christian schools across the UK, including Emmanuel School in Derby, The Branch Christian School in Yorkshire, The King’s School in Hampshire, and Wyclif Independent Christian School in South Wales.
Although the High Court dismissed their claim in June, Lord Justice Lewis has now ruled that the case raises issues of compelling public interest, granting permission to appeal on all eight grounds.
Supported by the Christian Legal Centre, the claimants argue that the VAT policy, introduced through the Finance Act 2025, unlawfully discriminates against families seeking authentic Christian education, particularly in deprived areas where these low-cost schools serve children with special educational needs and from diverse faith backgrounds.
The legal challenge targets decisions made by Chancellor of the Exchequer Rachel Reeves, and ultimately the Finance Act itself. Key interveners in the case include the Commissioners of HM Revenue and Customs, the Speaker of the House of Commons, and the Secretary of State for Education, Bridget Philipson.
The High Court previously acknowledged that the policy would disproportionately affect families in the bottom half of the income distribution, with 3,000 pupils expected to be displaced immediately. Despite this, the Court declined to intervene, citing Parliament’s broad discretion in matters of taxation.
However, the Court of Appeal’s decision recognises the serious human rights implications of the policy, including potential violations of Article 14 (prohibition of discrimination) and Protocol 1, Article 2 (right to education) under the European Convention on Human Rights.
The legal claim originated after Chancellor Reeves announced a draft bill on 29 July 2024, proposing amendments to the VAT Act 1994. The legislation was passed shortly after the initial hearing and became law as the Finance Act 2025. The policy took effect on 1 January 2025, and has already led to closures of private schools across the UK, despite significant public opposition.
The appeal is now likely to be heard in the coming months.
‘Policy is unjust and discriminatory’
Stephen White, a father and bookseller from Bradford who has chosen to live in one of the most deprived areas of Bradford so that he can afford to send his four children to the Bradford Christian School, said:
“We are very encouraged by the news that we can appeal. This policy is unjust and discriminatory. It denies us the right to raise our children in line with our beliefs and forces us to choose between home-schooling or compromising our faith. Labour has created a caricature of wealthy private schools, but that’s not our reality.”
The headteacher’s were also encouraged by the chance to appeal, and reiterated the challenges their schools are facing.
Jill Holt, Headteacher at The Branch Christian School, added:
“Most of our parents work full-time and cannot home-school. They choose our school because it reflects their values. VAT would add nearly £800 to fees, a burden many families simply cannot bear. The government’s argument doesn’t add up. It would cost more to educate these children in state schools.”
Adam Fairman, Governor at Wyclif Independent Christian School, said:
“We’ve kept Christian education affordable for over 40 years. But 20% VAT puts us out of reach for low-income families. We joined this case to protect their right to choose.”
Caroline Santer, Headteacher at The King’s School in Hampshire, said:
“This policy has already caused children to leave their schools and schools to close. It disproportionately affects military families, SEND children, and those with specific religious beliefs. We will continue to challenge this unjust legislation.”
Ben Snowdon, Headteacher at Emmanuel School in Derby, said:
“The consequences of this policy are devastating. We support the goal of quality education for all, but this tax undermines that aim and punishes families who are not from affluent backgrounds.”
‘This is about more than tax’
Andrea Williams, Chief Executive of the Christian Legal Centre, said:
“Once again, this Labour government is venturing into uncharted territory, imposing a direct tax on education. No UK or other Western government has previously taken such a step. Education has long been regarded as a public good, historically supported through charitable reliefs and never subject to direct taxation. This move marks a significant and troubling departure from that tradition.
The policy so far has been an utter disaster, in all likelihood not raising a penny more for education, but shutting down charitable long standing private Christian schools for what? Ideology. This policy needs to be not just rethought, but completely scrapped before any more wonderful schools are closed.
This government policy is part of a broader trend which is seeing the government seeking increasing control over what children learn. From radical RSE in primary schools to burdens on private faith schools and home educators, the message is clear: diversity of thought and belief in education is under threat.
This case is about more than tax, it’s about the freedom to educate children in accordance with faith and conscience. We will continue to stand with these families as they fight for justice.”
