The UK's Labour government recently announced changes forcing the Island to follow suit due to a pre-existing agreement
The Isle of Man is set to remove VAT exemptions on private school fees from 1 January 2025, in line with recent changes announced by the United Kingdom's Labour government.
Under the Customs and Excise Agreement with the UK, the Isle of Man must maintain consistency with the UK on customs and excise duties, as well as related rules and procedures.
As a result, the exemption on VAT for independent, fee-paying schools, including King William’s College and The Buchan, will be abolished.
Discussions are taking place between Treasury, the Department for Enterprise and KWC to address the potential impact of this change.
King William’s College educates around 500 pupils from both on-Island an internationally.
Admission fees for a current sixth form day pupil are £27,750, which with an added 20 percent VAT would increase by around £5,550.
Both ministers acknowledge the significant role King William’s College plays, not just in delivering education on the Island, but also in contributing to the local economy.
They say they are working closely with the college to explore ways to help navigate this transition and identify areas where government support might be provided.
Manx Radio has approached King William's College for comment.
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