The Welsh Government has launched a consultation on plans to end a tax break for some fee-charging schools. It would mean a number of private schools in Wales which receive charitable non-domestic rates relief no longer would from April 1, 2025.
In Wales private schools are registered as independent schools. There are 83 independent schools registered in Wales and 17 receive charitable non-domestic rates relief worth around £1.3m every year. The funding released by ending this tax relief would be available to support local public services.
The proposal now being consulted on seeks to bring independent schools with charitable status in line with the other independent schools in Wales.
Finance secretary Mark Drakeford said: “We believe that independent schools with charitable status in Wales should be treated in the same way as those which are not charities, which is why we are proposing removing this tax relief.
"It would bring Wales into line with Scotland and the UK Government is also planning to make similar changes in England."
The consultation sets out the Welsh Government’s proposal and asks for views. It will run for 12 weeks from September 23 and responses are requested by December 16, 2024.
Receive the latest news on AI Financial Navigator 4.0