

UCL is set to face the highest tax bill out of all UK Universities if the government’s proposed levy on international fees comes into practice, data from HEPI has revealed.
The new data has indicated that UCL could potentially be taxed a further £42 million under the new levy which was proposed in the government’s recent immigration White Paper.
The proposal would tax higher education providers based on the income they receive from international student fees at a rate of 6% and potentially lead to a £621 million hit to the higher education sector.
The data highlighted UCL’s dependence on international students, with 79% of the university’s tuition fee income coming from international students, the highest in the UK.
Many of the other London Universities also face a significant tax burden as a result of this levy, with Imperial, LSE, and UAL all relying on international students to supply over 70% of their tuition fees.
The Government previously said it “will explore introducing a levy on higher education provider income from international students, to be reinvested into the higher education and skills system”.
However, HEPI has suggested that the tax could lead to a lower teaching/research output from universities or it could be passed on to students leading to higher fees for international students and a less competitive market.
Nick Hillman OBE, the Director of HEPI said, “Threatening an expensive new tax on one of the country’s most successful sectors with only a rough idea of how the money will be used seems far from ideal.”
“Currently, the levy is a shadow looming large over universities as they prepare for the next academic year.”
The Cheese Grater previously reported on the potential impact of an international student tax with one student saying higher fees “would make the prospect of studying in the UK more daunting and challenging.”
A UCL spokesperson said: “International students bring far-reaching economic, social and cultural benefits to the UK and graduate with a profound connection to this country when they graduate. Their fees also help fund both university places for home students and pioneering research and innovation, which changes lives across the UK and around the world”.
“In considering the White Paper, it is vital that universities and the Government work together to make sure that our ability to invest in home students and our life-changing research is not put at risk.”