Administrators complete the sale of three independent schools following growing VAT pressure

Joint Administrators, Stephen Katz and David Birne of BTG Begbies Traynor, facilitate the sale of three independent schools across the South of England to a well-established international education operator, following the introduction of VAT on private school fees. The deal ensures the continuity of education for 1,600 enrolled students and protects all 250 jobs.

Stephen Katz and David Birne of BTG Begbies Traynor acted as Joint Administrators of a prominent group of independent schools specialising in academic and English language pathways for international students in Spring 2026.

The removal of VAT exemption on private school fees fundamentally shifted their cost base, as with other independent schools across the country, significantly eroding revenue. Compounding this, newly introduced restrictions on student visas to the US disrupted the group’s international pipeline, directly impacting enrolment and income.

The group operated several well-regarded private schools across the South of England, while delivering training services across the UK and the US. Without professional restructuring advice, the combination of external pressures proved impossible to absorb.

The BTG team set out to secure a long-term lifeline for the group of schools, while protecting the education of nearly 1,600 enrolled students, preserving employment for more than 250 members of staff, and ensuring continuity of education.

Working closely with colleagues across BTG, including financial advisory and real estate partners, the team undertook a thorough valuation of the group’s assets, drawing on their deep experience in complex education insolvencies. A structured sales process was launched with dual objectives, achieving the best possible outcome for creditors, while prioritising continuity of education and employment throughout.

An asset sale was agreed with a well-established international education operator, enabling the schools to continue trading without interruption and all enrolled students to remain in education. Over 250 employees transferred into the new operating structure as part of the deal.

Educational provisions continued with minimal disruption throughout, and the business now has a strong platform to move forward.

Working closely with colleagues across BTG, including financial advisory and real estate partners, the team undertook a thorough valuation of the group’s assets, drawing on their deep experience in complex education insolvencies. A structured sales process was launched with dual objectives, achieving the best possible outcome for creditors, while prioritising continuity of education and employment throughout.

An asset sale was agreed with a well-established international education operator, enabling the schools to continue trading without interruption and all enrolled students to remain in education. Over 250 employees transferred into the new operating structure as part of the deal.

Educational provisions continued with minimal disruption throughout, and the business now has a strong platform to move forward.

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This case is an example of the pressures facing independent schools and education providers across the UK. VAT on private school fees, shifting visa policy, and a reduced intake of international students are creating financial strain that governance teams may not have anticipated, or cannot absorb quickly enough. With growing pressure on independent schools to plug revenue lost to the removal of VAT exemption on private school fees, they must find additional ways of raising revenue.

With some schools exposed to a higher degree of pressure than others, the right advice sought early can be the difference between a managed outcome and a disorderly closure. Backed by BTG, the Education Advisory team provides confidential advice to independent schools, including restructuring, M&A, insolvency, and advisory support.

As a school leader, you carry important legal duties under charity and company law. Failure to act in the best interests of the school, especially in times of distress, can result in personal liability or reputational damage.

Key responsibilities include:

• Ensuring the school remains solvent
• Seeking advice from professional advisors at the earliest signs of trouble
• Keeping full records of decisions and justifications