Family fun with temporary summer VAT rate

But for the hospitality businesses impacted, another set of rules to get right.

To make family days out more affordable and support businesses, the government has announced the Great British Summer Savings scheme. It means a temporary, reduced VAT rate of 5% will apply over the summer holidays to selected activities and services for families with children. The government expects businesses to pass the VAT saving on to customers.

The temporary rate has effect for the period from 25 June 2026 to 1 September 2026 (inclusive). It applies to:

• certain supplies of children’s meals (eaten on the premises, not take-aways)
• children’s admission to theatres, cinemas, concerts, exhibitions and shows
• all admission tickets to attractions suitable for families with children, such as amusement parks, fairs, adventure parks and soft play attractions. Sports facilities are not included.

The reduced 5% rate replaces the standard rate of VAT of 20% for supplies within scope during this period. It does not apply to activities where no VAT is charged, for instance where there is already an exemption, or where supplies are zero-rated.

Small print

It goes without saying that any business impacted will need to check the detail of the rules, and further information can be found in HMRC’s newly published ‘Revenue and Customs Brief 5 (2026): Temporary reduced rate of VAT for children’s meals, tickets and family attractions’.

Children’s meals

For the reduced rate to apply, the meal must be supplied for consumption on the premises; served from a dedicated children’s menu; and marketed, priced and presented as intended for children. It is important to be clear on what does, and does not qualify under this heading. A smaller or cheaper portion of an adult meal that is not presented as part of a children’s menu, for example, is not eligible.

The Brief also deals with how to treat a child’s meal supplied for a single inclusive price, for example, including a drink or additional courses – here the entire package can qualify for the reduced rate. Optional items, add-ons or upgrades priced separately, that do not form part of the children’s meal, are still subject to their normal VAT liability.

Bundles and mixed supplies

Where admission, meals or tickets are supplied together with other goods or services for a single price, normal VAT rules should be used to determine VAT liability. Only the part of the supply that falls within the parameters set out in the Brief is eligible for the 5% rate. Other elements fall to be treated according to their normal VAT liability.

Practical problems

Businesses will need to pivot rapidly, updating systems and briefing staff to put the change into practice, and also to revert to normal rules when the scheme ends. We are here to help in any way we can. Do please contact us for help with this, or any other VAT issue.

Please note: This blog/news post provides an overview or insight only and therefore, should be viewed as being for guidance only purposes. Legislation does change and your own circumstances may differ from the situation highlighted in this blog. Therefore, before taking any action we recommend you get in touch with us to discuss your own situation.