Labour has dropped plans to end charitable status for private schools but says it will still remove other tax breaks if it wins the next general election.
The status exempts some private schools in England and Wales from taxes.
Sir Keir Starmer had previously said that charitable status for private schools could not be justified.
The party now says it can remove "unfair tax breaks" without changing the rules on charitable status.
Labour says it would charge private schools 20% VAT, as well as ending business rates relief.
Speaking to the BBC's Nick Robinson on the Political Thinking podcast, Sir Keir said the policy was not an "attack on private schools", but that the country had to "do something about the appalling state of our schools" and that those changes would need to be funded.
"I'm very comfortable with private schools," he said, "but I want our state schools to be just as good, so it doesn't matter whether you send your child to private school or to state school because you'll get equal chances in life."
A spokesperson said the party would use the money raised from the changes "to fund desperately needed teachers and mental health counselling in every secondary school".
The move appears to contradict comments made by members of Sir Keir's top team and the Labour leader himself.
