A current DfEconsultation on the future of schools proposes that independent schools with the capacity and capability should meet one of two expectations in recognition of the benefits of their charitable status (a) To sponsor academies or set up a new free school in the state sector (b) to offer a certain proportion of places as fully funded bursaries to those who are insufficiently wealthy to pay fees. Respondents to the consultation are asked whether the Government should consider legislation to allow the Charity Commission to revise its guidance, and to remove the benefits associated with charitable status from those independent schools which do not comply.

The document is not explicit about what it is threatened, but the implication is that there would be a denial of tax reliefs (especially non-domestic rates relief) for charitable independent schools in England. CTG is always concerned at attempts to limit reliefs to “deserving charities” as this sets a dangerous precedent that could threaten to undermine the principle of charitable tax relief. Further information on the consultation (which clsoes on 12 December 2016) can be found here.

Tampon Tax Fund