Temporary Summer VAT Relief

The Government has announced a temporary VAT reduction this summer aimed at helping families with the cost of school holiday activities. Under the new 'Great British Summer Savings' scheme, the standard VAT rate of 20% will be reduced to 5% on selected family-focused goods and services between 25 June and 1 September 2026.

The temporary reduction applies to qualifying children's meals, children's cinema, theatre, show and concert tickets, and admission to certain family attractions. Businesses operating in the hospitality, leisure and entertainment sectors should review their pricing and VAT treatment ahead of the changes.

For catering businesses, whether a meal qualifies will depend mainly on how it is marketed. Meals listed specifically on a children's menu will qualify for the reduced VAT rate, while smaller portions shown on the main menu will not.

The relief also covers children's tickets for cinemas, theatres and concerts. Where tickets are sold in different categories, only those marketed and sold as children's tickets qualify. However, family tickets that include one or more children will benefit from the reduced VAT rate for the entire ticket price.

Family attractions such as soft play centres, zoos and water parks may also qualify, regardless of the age of the visitor using the ticket. The relief does not normally apply to season passes or multi-entry tickets extending beyond the relief period, unless they are priced the same as a single-day admission.

Businesses can choose whether to pass the VAT saving on to customers or retain some or all of it within existing pricing structures. If your business may be affected by these temporary changes, it is important to ensure that your pricing and VAT accounting systems are updated correctly in time for the change. We can help you with this.