The only Catholic boarding school in Scotland has announced its closure and partly blames Labour’s proposals to implement VAT from January.
Kilgraston School in Perthshire cited "the possible impact of VAT on school fees" as a factor in the decision.
The announcement came on Tuesday with the school stating that it had closed with immediate effect.
Current students will be offered places at nearby private schools Glenalmond College and Craigclowan School.
The only Catholic boarding school in Scotland has announced its closure and partly blames Labour’s proposals to implement VAT from JanuaryGoogle mapsThe closure follows a failed sale which saw Achieve Education, the education provider, pulling out of the deal after it "reassessed its commitment to investing in the school".
Parents, staff and former pupils were informed of the decision in a letter.
The school suggested that Labour’s VAT plans could affect pupil numbers without the financial support from Achieve Education.
It required a benchmark of 210 children to break even, but only had 173 students.
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Last month, Chancellor Rachel Reeves, announced that the Government will start charging VAT on private schools from January 1, 2025.
Last year, the school faced a threat of closure but parents, alumni and donors raised £1.2 million within 48 hours.
However, the £39,000-a-year school said that as Achieve Education backed out of the sale, it had no choice but to close due to "both a short and long-term funding deficit".
According to the letter, the institution also had an £860,000 funding black hole for the next academic year, with £3.4 million of outstanding loans and finance commitments.
Kilgraston School in Perthshire cited "the possible impact of VAT on school fees" as a factor in the decisio
GB NewsThe Board of Trustees added to the statement saying that it "has explored a number of opportunities in a bid to save the school but unfortunately none of these have offered a financially viable solution.
"This leaves the school with no choice but to close.
"We will do all we can to help ensure a smooth transition for all affected. We are very sorry not to be able to continue operating a school that is close to all our hearts."
The Scottish Conservative’s education spokesman in Holyrood, Liam Kerr said the closure was an "early indication of the impact of Labour’s policy of imposing VAT on education".
