Private schools will make a combined tax saving of £522 million in business rates tax relief over the next five years thanks to their charitable status, research has revealed.
Organisations in England and Wales which hold charitable status are entitled to an 80 per cent tax relief from business rates, with a further 20 per cent available on a case-to-case discretionary basis.
CVS, the business rent and rates specialist which published the report, said private schools will pay £634.4 million out of an estimated £1.16 billion in the next five years – a tax saving of around £522 million.
It added that the schools’ combined rateable value of £386.6 million has risen by 19.6 per cent since 2010.
Around 586 out of 1,038 private schools hold charitable status.
The Department for Communities and Local Government (DCLG) said private schools seeking charitable status “must meet a robust public benefit test”.
It also said academies, foundation schools, and voluntary-aided schools automatically qualified for charitable status, adding that council-run school funding accounted for the cost of business rates.