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MPs have rejected an inquiry into removing private schools' charitable status. Which side are they on?
LUCIA QUADRINI of Integrate Private Schools says their favourable treatment cannot be justified
City of London School, to the right is the dome of Saint Paul's Cathedral [Andreas Praefcke/CC]

EARLIER this month, MPs voted against an inquiry into removing the charitable tax status of fee-paying schools.

This comes in spite of Labour’s estimate that removal of just one private school tax loophole  – their exemption of VAT – would generate an additional £1.6 billion per year for government spending. 

Other tax breaks enjoyed by private schools include paying no corporation tax on their profits, no capital gains tax when they sell assets, and no inheritance tax on any bequests. In fact, they even receive Gift Aid on many donations, courtesy of taxpayers going through a recession. Labour rightly argues that, upon ending these exemptions, that new pot of billions could be used to strengthen the state education system, with a notable suggestion of recruiting more teachers amid current staff shortages. 

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