Four Christian independent schools have lost a High Court challenge over the government’s imposition of VAT on private school fees.

The claimants include Emmanuel School in Derby, Branch Christian School in Yorkshire, King’s School in Hampshire, and Wyclif Independent Christian School in South Wales, supported by the Christian Legal Centre.

They argued that the government’s amendment to the VAT Act 1994 was incompatible with their rights to freedom of religion or belief under the European Convention on Human Rights. Parents fought on the grounds of discrimination, saying they were being hindered from giving their children an education in line with their religious beliefs.

It came in light of new tax measures by the Chancellor of the Exchequer, under the Finance Act 2025.

The court acknowledged that the policy would impact around 159,000 pupils from lower-income households and that 3,000 could be immediately displaced as a result.

However, the High Court ruled that whilst there is a right to start and run private schools, the government is not obliged to ensure unhindered access to private education. It held that the tax was justified as a revenue-raising measure and that Parliament had considered its impact before passing the legislation.

School leaders and parents say they’re disappointed.

Wycliff Independent School is the only faith-based school of its kind in the region, with 200 pupils. 

Governor Adam Fairman said: “We have a long history of keeping Christian education affordable for all families who want it. We have joined this case to keep it that way as 20 per cent VAT would put us out of reach of low-income families.”

Caroline Santer, headteacher at The King’s School, Fair Oak, in Hampshire, said: "After over two months of waiting, this judgement comes as a huge disappointment, but we will continue to challenge the legality of this policy.