Welcome to our penultimate newsletter for 2024 aiming to bring you the latest in financial news and updates. This month we focus on the following topics.
First our lead story:
PRIVATE SCHOOLS VAT COULD AFFECT 55% OF PARENTS – The rising costs of private education, compounded by the introduction of VAT on school fees in January, are expected to impact more than half of children in private schools.
According to a survey of 2,000 high-net-worth individuals (HNWIs), 993 parents with children in private education expressed concerns about the financial burden.
Over half (55%) of these parents fear their children’s education could suffer solely due to the addition of VAT. One in eight plan to transfer their children to state schools, with many already struggling to afford the fees before the tax change.
Only 15% of parents confirmed they have no plans to withdraw their children from private schools, while 6% admitted that their biggest worry is affording the fees—up from 0% in a previous report by Saltus.
In addition, one in five parents are considering moving their children to a less expensive private school within the next year. Some even contemplate relocating abroad, citing Labour’s stance on private education fees. 17% said they would cut spending in other areas to keep their children in private schools.
Despite these concerns, overall confidence in the economy among HNWIs has risen from 78% to 84%, the highest level in six years.
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And other stories:
UK HOUSE PRICES NEAR RECORD HIGH: Mortgage rates boost confidence, but affordability remains an issue, with the average price reaching £293,399, just £108 short of the June 2022 peak.
IFRS 15 MEETS EXPECTATIONS DESPITE CHALLENGES: The International Accounting Standards Board (IASB) has completed its post-implementation review of IFRS 15, the revenue recognition standard, concluding that it works as intended and provides valuable information for investors.
TREASURY RETHINKS NON-DOM TAX STATUS CHANGES: There is concern that scrapping non-dom status could lead to wealthy individuals leaving the UK, undermining the expected revenue gains.
WANT TO TALK TO AN EXPERT? Call one of the team at Porter Garland Chartered Accountants for advice on any of your financial matters. Or to keep reading, click this link: news_roundup_november_2024_blue