The government has no plans to change the tax status of independent schools.

The government has agreed a joint understanding with the Independent Schools Council to encourage more independent schools to work in partnership with state-funded schools across 4 key areas: governance, teaching, curriculum and targeted school improvement. It also encourages independent schools to offer a greater number of full bursary places, targeted at children from disadvantaged backgrounds.

As at 23 July 2019, there are six independent schools sponsoring a total of 13 academies. All of these independent schools were approved as sponsors prior to 2017.

Of the free schools we have opened since 2017, the London Academy of Excellence (LAE) in Tottenham was set up by an independent school, Highgate School. LAE Tottenham is supported by Highgate School, as well as eight other leading independent partner schools.

The school’s sister school, LAE Stratford, was set up by Brighton College in 2012. The school reported that in the 2018/19 academic year, 26 students received offers from Oxford or Cambridge. This is an outstanding achievement, especially in a geographic area with relatively low Oxbridge destinations.

The Department has a joint understanding with the Independent Schools Council to encourage more independent schools to work in partnership with state-funded schools across four key areas: governance, teaching, curriculum and targeted school improvement. The Department announced funding for cross-sector partnerships in June and will invite bids in the autumn.

The joint understanding also encourages independent schools to offer a greater number of full bursary places, targeted at children from disadvantaged backgrounds.

For 2019-20, the Department estimates that £1.1 billion more will need to be put into the Teachers’ Pension Scheme by employers to ensure teachers’ pensions remain generous and attractive to the profession. This is broken down as down as follows: £830 million from state-funded schools, £110 million from the Independent Sector, £80 million from Further Education Colleges and £80 million from affected Higher Education Institutions.

It is the Government’s intention to fund independent special schools for the costs of increased employer contributions in 2019-20, as these schools often have pupils on education, health and care plans, which are local authority funded, but the Department will be consulting to seek views on this to understand the impact these costs will impose on the independent schools sector.

I refer the hon. Member to the answer given by the Financial Secretary to the Treasury on 06 July 2017 to Question 1921.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2017-06-29/1921/

No estimates of the sum likely to accrue to the public purse from changing the charitable tax status of independent schools have been made. Also, no estimate of ending the charitable status of independent schools have been made. Data held on charitable tax relief costs cannot be broken down into specific sectors.

Where an independent school satisfies the requirements of the Charities Act it may be recognised by the relevant Charity regulator as having charitable status. Requirements will include operating on a not-for-profit basis with a focus on the public benefit of the education they provide.

Schools with charitable status that apply to HM Revenue and Customs may be eligible for a number of tax exemptions and reliefs. These include the ability to reclaim Gift Aid on any qualifying donations that they receive and exemptions on charitable trading profits, rental income, investment income and business rates, as well as certain reliefs from VAT.

The tax treatment for independent schools varies depending on whether or not they have charity status. In common with other organisations, independent schools must abide by [EU and UK] tax rules and pay all tax that is due.

I refer the hon. Member to the answers I provided on 27/06/2017 to Question number 713 and 714.

As at 01 November 2016 eight independent schools sponsor academies and three independent schools have established free schools.