Eton among elite private schools set to cash in on windfall from new VAT rules

VAT-registered schools will be able to claim refunds for tax paid on capital projects over past 10 years

The UK's biggest and richest private schools are in line for substantial financial windfalls as a consequence of the government's plan to impose VAT on their fees, according to official new guidance issued by tax authorities.

A document issued by HMRC on Thursday made clear that, once registered for VAT, independent schools will be able to claim back the tax they have paid on capital projects such as buildings and land acquisition completed over the past 10 years.