HMRC has recently announced a temporary reduced rate of VAT of 5% between 25th June 2026 up to and including 1st September 2026, aimed at reducing the cost of certain family activities during the summer holidays.
The reduced rate applies to:
- Children’s meals
- Children’s or qualifying family tickets for cinemas, theatres and similar events
- Admission to certain family-friendly attractions
The reduction in VAT may allow businesses to pass on savings to customers, although this is not guaranteed.
The types of businesses that these reduced rates apply to include but are not limited to:
- Restaurants and cafés
- Performance venues (excluding sports events or activities)
- Family attractions suitable for families with children
Children’s Meals
For the reduced rate of VAT to apply, the meal must be clearly marketed as a children’s meal only, and the meal must be supplied for consumption on the premises, not takeaway.
Children’s Theatre and Cinema Tickets
The VAT treatment depends on the type of ticket purchased. Tickets advertised and sold as a child’s ticket qualifies for the reduced rate, whilst adult-only tickets remain standard-rated. Family tickets qualify only if they’re clearly marketed as a family admission including at least one child.
Admission to Attractions
The reduced rate applies to admission tickets for certain family attractions for any customer, regardless of age, provided the attractions are suitable for families with children, such as theme parks, zoos, museums, soft play centres and similar attractions. Pay-per-ride attractions or activity-based charges that are separate from general admission are excluded.
Where attractions also provide food, any children’s meals meeting the qualifying criteria can also be subject to the reduced rate.
Time of Supply
The VAT rate applied depends on the time the supply is treated as taking place, not simply when payment is made.
Care should be taken with tickets covering dates both inside and outside the relief period, as well as multi-entry or multi-attraction tickets.
The correct VAT treatment will depend on how these tickets are structured and priced.
Summary
This temporary VAT reduction supports families by lowering the VAT rate on selected meals and leisure activities during the summer.
- Children’s meals (eat-in only) qualify
- Children’s tickets and certain family tickets qualify
- Attraction admissions are reduced for all visitors (where within scope)
Businesses and consumers should review how products are marketed and described, as this determines whether the reduced rate applies.
If you require any further information regarding the reduced rates of VAT over the summer holiday period, please do not hesitate to contact a member of our VAT team on 01227 277667 and we will be happy to help.
