Value added tax (VAT) is one of the government's main sources of income. It is payable on top of the purchase price of many goods or services and the standard rate is 20%.
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Previously, private schools did not have to charge VAT on their fees because of an exemption for organisations providing education.
Private school fees are liable for 20% VAT from 1 January.
The government previously said the tax would apply to all payments made for the January term after 29 July 2024.
About half of England's private schools are also charities, so receive an 80% reduction on business rates (taxes on properties used for commercial purposes).
Separate legislation will be introduced to remove this tax relief from April 2025, but plans to remove private schools' charitable status have been dropped.
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