Temporary VAT Reduction for Children's Meals, Family Attractions and Leisure Activities

Government announces summer VAT cut to support families and tourism

The Government has announced a temporary reduction in VAT from 20% to 5% on a range of children's meals, family attractions and leisure activities during the summer holiday period.

The measure is intended to support families with the cost of living while providing a boost to the hospitality, tourism and leisure sectors.

When Will the Reduced Rate Apply?

The temporary 5% VAT rate will apply from 25 June 2026 to 1 September 2026 across England, Wales, Scotland and Northern Ireland.

In addition, children aged 5 to 16 in England will qualify for free bus travel throughout August as part of the wider support package.

The relief period has been timed to coincide with the school summer holidays, beginning shortly before schools break up in Scotland and ending at the conclusion of the summer holidays in England, Wales and Northern Ireland.

What Qualifies for the Reduced VAT Rate?

The temporary 5% VAT rate will apply to:

Children's Meals in Restaurants

Children's meals served in restaurants, cafés and similar establishments for consumption on the premises will qualify. To be eligible, meals must be specifically marketed and provided as children's meals.

Family Entertainment and Leisure Activities

The reduced rate will also apply to children's and family admission tickets for:

• Cinemas

• Theatres

• Exhibitions

• Music and entertainment venues

• Museums

• Zoos

• Adventure parks

• Soft play centres

• Theme parks

• Aquariums

• Safari parks

• Observatories

• Similar family attractions
  

What Is Not Included?

The temporary VAT reduction does not apply to:

• Takeaway meals

• Food delivery services

• Sporting activities and events
  

Businesses should carefully review their supplies to determine which transactions qualify for the reduced rate and which remain subject to the standard rate of VAT.

Season Tickets and Advance Bookings

The Government has confirmed that season tickets covering the period between 25 June and 1 September 2026 may qualify for the reduced rate, depending on how they are priced.

Where a ticket allows repeated entry before and after the relief period, the reduced rate may still apply if the ticket is sold for a single price and cannot be separately apportioned.

The reduced VAT rate can also apply to advance bookings and prepaid admissions where entry takes place during the qualifying period, regardless of when payment was made.

What If VAT Has Already Been Charged at 20%?

Businesses that have already accounted for VAT at the standard rate on qualifying sales can adjust their next VAT return to recover the overpaid VAT.

The Government has indicated that businesses will not be required to pass the VAT saving directly on to customers through refunds, although individual businesses may choose to do so.

What Should Businesses Do Now?

Affected businesses should review their pricing structures, booking systems and accounting software to ensure the correct VAT rate is applied during the relief period.

As with any temporary VAT change, there can be practical and administrative challenges, particularly for businesses with advance bookings, mixed supplies or automated payment systems.

At SJC Chartered Accountants, we can help you determine whether your supplies qualify, implement the correct VAT treatment and ensure your VAT returns remain compliant throughout the temporary relief period.

If you would like advice on how the temporary VAT reduction affects your business, please get in touch with our team today.