Temporary VAT cut 2026: reduced 5% VAT on children’s meals, tickets and attractions – what businesses need to know

VAT cut for summer 2026: key rules under the Great British Summer Savings scheme

The government has announced a temporary reduction in the VAT rate from 20% to 5% for certain supplies aimed at families during the 2026 summer holiday period.

The reduced rate will apply from 25 June to 1 September 2026 (inclusive) and forms part of the government’s ‘Great British Summer Savings’ initiative.

Guidance on how the rules will work are set out in Revenue and Customs Brief 5 (2026): Temporary reduced rate of VAT for children’s meals, tickets and family attractions. While the measure is straightforward in principle, the detailed conditions mean that applying the reduced rate correctly may require careful analysis and process changes.

Summer 2026 VAT cut explained: key facts and dates for businesses

• Temporary reduced VAT rate of 5% (instead of the standard rate of 20%)
• Applies from 25 June to 1 September 2026 (inclusive)
• Covers certain children’s meals, tickets to entertainment venues and admissions to attractions
• Applies based on how supplies are marketed, priced and presented
• Applies across the UK
• Normal VAT rules continue to apply to mixed or non-qualifying supplies

Which UK business qualify for the summer 2026 VAT reduction?

The reduced rate applies to businesses making supplies to families with children, including:

• Restaurants, cafés and similar establishments
• Cinemas, theatres and performance venues
• Operators of theme parks, zoos, soft play centres, circuses and other attractions
• Museums and similar venues

Given the short lead-in time, businesses will need to make changes to systems and pricing quickly ahead of implementation.

Which supplies qualify for the 5% VAT rate in summer 2026

The reduced rate applies to three categories of supply where the relevant conditions are met:

• Children’s meals supplied for consumption on the premises
• Children’s admission tickets to cinemas, theatres, exhibitions, concerts and shows
• Admission tickets to certain attractions suitable for families

Where a family ticket includes at least one child, the reduced rate can apply to the full ticket price, including any adult admissions within that package.

VAT on children’s meals (2026): eligibility rules, conditions and exclusions

The reduced rate applies where a meal is:

• Marketed, priced and presented as a children’s meal, and
• Supplied as part of catering services for consumption on the premises

Whether a meal qualifies depends on how it is marketed, presented and priced, rather than who consumes it.

The reduced rate does not apply to:

• Smaller or discounted versions of adult meals
• Shared meals meant for both adults and children
• Takeaway food

Where a children’s meal is supplied as a fixed package (for example including a drink), the whole package can qualify if it meets the conditions.

VAT on children’s tickets 2026: cinema, theatre exhibitions and shows

The reduced rate applies to children’s admission tickets to:

• Cinemas
• Theatres, concerts and shows
• Exhibitions

A children’s ticket must be marketed and sold specifically as a child admission.

Where a family ticket is sold for a single price and includes at least one child admission, the reduced rate can apply to the entire ticket.

VAT on attractions 2026: theme parks, museums, zoos and soft play centres

The reduced rate applies to admission charges for certain attractions suitable for families, including:

• Theme parks, amusement parks and fairs
• Zoos, aquariums and wildlife attractions
• Circuses
• Museums and similar venues (where not already exempt)
• Soft play centres and indoor play facilities
• Adventure parks and observation attractions

The reduced rate applies to the charge for the right of admission only. Other supplies, such as food, merchandise or upgrades, remain subject to their normal VAT treatment.

Where a supply is already exempt from VAT (for example under the cultural exemption), the reduced rate will not apply.

VAT treatment of season tickets and multi-entry admissions (summer 2026 rules)

Tickets that permit repeat entry outside the period from 25 June to 1 September 2026 will not qualify for the reduced rate unless they are priced the same as a standard single-entry ticket.

Tickets allowing repeat entry solely within the qualifying period may qualify.

Excluded supplies from the 2026 VAT cut: what is not eligible?

The reduced rate does not apply to:

• Sporting activities, including participation and spectating
• Use of sports facilities
• Supplies already exempt from VAT
• Goods or services sold separately from qualifying supplies

Each supply must be considered individually to determine whether it falls within scope.

VAT on bundles and mixed supplies: how the 2026 VAT cut applies

Where supplies are provided as part of a package, normal VAT rules continue to apply.

Only the element that falls within the qualifying categories can benefit from the reduced rate. Other elements must be treated according to their normal VAT liability.

The outcome will depend on how the bundle is marketed and structured.

Time of supply rules for the 2026 VAT cut: advance bookings

The reduced rate applies to supplies of a right of admission between 25 June and 1 September 2026.

In practice:

• Admission must take place within this period
• Tickets purchased during the period for use after 1 September 2026 do not qualify
• Businesses can choose to apply the reduced rate to prepayments

Businesses that have already accounted for VAT at 20% may need to consider whether adjustments are required.

What businesses must do now: action plan for the summer 2026 VAT cut

The temporary reduced rate of VAT introduces practical considerations, including:

• Identifying which supplies qualify for the reduced rate
• Reviewing how products and services are marketed and presented
• Pricing decisions
• Applying the correct VAT treatment to mixed or bundled supplies
• Updating systems and processes within a short timeframe
• The risk of misapplying the reduced rate, particularly for more complex arrangements

What happens next: legislation and updates on the 2026 VAT cut

The temporary reduced rate will be implemented through a statutory instrument, with the current published guidance reflecting how the rules are expected to apply once enacted.

Businesses should note that the detail may change before the legislation is finalised. We will review the legislation once published and provide further updates as required.

How Saffery can help you implement the 2026 VAT changes

If your business operates in hospitality, leisure or visitor attractions, it’s important to understand how the temporary VAT changes apply to your supplies.

We can support you:

• Determine whether your supplies fall within scope
• Review the VAT treatment of mixed supplies and packages
• Manage VAT compliance and reporting

If you would like to discuss how the temporary VAT rate may affect your business, please speak to your usual Saffery contact or get in touch with Nick Hart.