HL Deb 18 July 1988 vol 499 cc1191-2WA
Lord Chelwood

asked Her Majesty's Government:

Whether tax reliefs for school fees at independent schools is consistent with European Community regulations and if so whether they will introduce this or other measures, such as zero rating to offset the burden of VAT.

Lord Brabazon of Tara

The UK's ability to introduce reliefs for direct taxes in respect of school fees at independent schools is not constrained in any way by EC law. Under the EC Sixth Directive on VAT, school education is exempt from VAT; in other words, VAT is not chargeable on school fees, but equally the tax on goods and services bought in for the operation of the school is not deductible. To introduce a zero rate of VAT for school education would be contrary to the Sixth Directive.