Private school to absorb VAT changes until July

King William’s College opened on the Isle of Man in August 1833

The Isle of Man's only private school has confirmed it will absorb the costs of planned VAT changes for the 2025 spring and summer terms.

It follows the UK government's announcement in July that VAT at the standard rate of 20% will be added to private school fees from 1 January 2025.

King William’s College (KWC) said the move would provide families with "financial stability" and any future fee changes would be confirmed by Easter.

The Isle of Man government said it was working with the school "to understand how they might navigate through this transition and where we might assist".

An agreement between the two jurisdictions means the island is required to keep its customs and excise duties in line with those in the UK.

'Sustainable future'

Under the current rules, private schools do not have to charge VAT on their fees because of a legal exemption for organisations providing education.

But the UK government has said removing that exemption would fund 6,500 new teachers in England.

KWC, which has about 430 pupils, said the Manx government had committed to working with the school to "ensure a sustainable future" and to explore potential solutions to "mitigate the impact of this change".

Principal Damian Henderson said discussions with government "about the importance of maintaining independent education on the island" had been "positive".

The Isle of Man government said both the Treasury and the Department for Enterprise recognised "the role KWC played in providing educational services on the island, as well as the economic contribution it generates as a result".

The school recently announced plans to move the junior Buchan School to the King William's College site in Castletown in a bid to save money.