Court of Appeal dismisses human rights challenge to VAT on private school fees

The appeal was brought by two groups of claimants: Charedi Jewish children (and their parents) and evangelical Christian schools (together with students attending those schools and their parents). The claimants contended that the failure to carve out a VAT exemption for low-cost schools involved Thlimmenos discrimination (i.e. a failure to treat differently those whose circumstances are materially different) contrary to Article 14 in conjunction with Article 2 of Protocol 1 (the right not to be denied education). The second claimant group further contended that the measure disproportionately interfered with property rights, contrary to Article 1 of Protocol 1.

The Court (Vos MR, Singh and Falk LJJ) dismissed the appeal, upholding the decision of the Divisional Court (R (ALR & Ors) v Chancellor of the Exchequer [2026] 1 WLR 10, per Dame Victoria Sharp P, Newey LJ, and Chamberlain J). It found that the decision not to make an exception for low-cost schools was justified, and that the measure did not interfere with property rights at all.

Sir James Eadie KC, Jason Pobjoy KC, and Tim Parker acted for the Chancellor, HMRC, and the Secretary of State for Education.

The judgment is available here.