Industry News
Charitable status 'of immense importance to private schools'
Posted on 11th June 2007
Private schools could lose out to the tune of thousands of pounds if the Charity Commission rules that they are to lose their charitable status.
This is according to an article in the Hampstead & Highgate Express, which suggested independent schools could see funding reduced by some £100 million annually if rules change.
Under new legislation, private schools may be forced to pass a test of public benefit to prove they contribute to the local community in order to qualify for tax exemption.
Commenting to the paper on this prospect, Andrew Aiken, bursar at the Hall prep school in Belsize Park, said charitable status is "of immense importance" to the school.
"We would manage to survive if we lost it but nevertheless there is a lot at stake," he said, adding that it would change the way in which it views its finances.
Government statistics state there are 2,300 independent schools in England setting their own curricula and policies regarding admissions.
They are funded by school fees paid by parents and income from investments and more than half currently enjoy charitable status.