Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
In 2020, the Welsh Government consulted on charitable non-domestic rates relief for private schools and hospitals in Wales. Following the consultation, we confirmed that we would give further consideration to the policy options and consult further on any specific proposals for change.
Today, I am launching a consultation on the Welsh Government’s proposal to withdraw charitable non-domestic rates relief from private schools, from 1 April 2025. In Wales, private schools are registered as ‘independent schools’.
This proposal seeks to bring independent schools with charitable status in line with other independent schools in Wales, for the purposes of non-domestic rates. The aim is to make additional funding available for local services in Wales, by withdrawing a government funded tax reduction for private schools.
The Welsh Government’s proposed approach to this matter is complemented by the UK Government’s plans to remove the existing exemption from VAT (which is not devolved) from private schools across the UK and to remove charitable relief from private schools in England. The Scottish Government has already removed charitable relief from private schools.
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. I look forward to considering all contributions on this important matter.
The consultation is available at:https://www.gov.wales/charitable-non-domestic-rates-relief-private-schools