The Government has announced plans for a temporary reduction in VAT on certain family attractions, children’s meals and entertainment tickets over the school summer holidays, in a move aimed at helping families manage the rising cost of living.
The temporary measure, announced by Chancellor Rachel Reeves as part of the Government’s “Great British Summer Savings” package, would reduce VAT from 20% to 5% on qualifying supplies between 25 June and 1 September 2026.
The reduced rate is expected to apply to admissions for attractions such as theme parks, zoos, museums and soft play centres, alongside children’s cinema, theatre and concert tickets. Children’s meals in restaurants and cafés are also expected to qualify.
The move has drawn comparisons with the temporary VAT reliefs introduced during the Covid-19 pandemic for the hospitality and leisure sectors.
Commenting on the proposed changes, UNW VAT Partner Mark Hetherington said:
“This will be welcome news for businesses operating across the hospitality, leisure and attractions sectors heading into the key summer trading period. It should also provide some support for families looking to do something with children over the school holidays at a time when household budgets remain under pressure.”
However, Mark noted that a number of important points still require clarification.
“At the moment, draft legislation and detailed HMRC guidance have not yet been published, so the detail will be important. Businesses will want clarity around exactly which supplies qualify and how the temporary relief will operate in practice.”
Mark also highlighted one omission from the details released so far.
“One slightly surprising aspect is that the announcement does not currently define up to what age HMRC considers a person to still be a child for the purposes of the relief. We would expect that to be clarified fairly quickly given how fundamental it is to the operation of the measure.”
Further detail is expected once draft legislation and HMRC guidance are released, with businesses likely to welcome early clarity on the practical operation of the temporary relief.
If you would like more information about this, or any other VAT related matter, please contact one of our dedicated VAT specialists:
Mark Hetherington
VAT Partner
E: markhetherington@unw.co.uk
T: 07715 704 739
Ian Coulthard
VAT Senior Manager
E: iancoulthard@unw.co.uk
T: 0191 243 6017
