Welsh Government ends tax break for independent schools

The Welsh Government is ending business rates relief for some fee-charging schools to use the funding to support local public services.

All charities currently receive at least 80% relief from their non-domestic rates bills, including some fee-charging schools. Removing this tax break will bring independent schools with charitable status in line with other independent schools in Wales for the purposes of non-domestic rates.

The Scottish Government has already removed charitable relief from independent schools and the UK Government is planning similar changes in England.

The Welsh Government consulted on the change last year. Feedback has led to changes to ensure the relief still applies to independent special schools where most or all learners have been placed in the school by the local authority as part of delivering the additional learning provision set out in their individual development plan.

The change will come into effect on 1 April 2025, if it is approved by the Senedd.

Mark Drakeford, Cabinet Secretary for Finance and Welsh Language said:

“We believe independent schools with charitable status in Wales should be treated in the same way as those which are not charities.

“By removing this tax break, we can free up as much as £1.3m every year to support local public services.”