Temporary 5% VAT rate introduced for children’s meals and family attractions this summer.
Overview
The Government has announced a temporary reduction in the VAT rate from 20% to 5% for certain supplies connected with children’s meals and family leisure activities. The measure is set out in Revenue and Customs Brief 5 (2026) and forms part of a broader cost‑of‑living support package.
The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive) and is intended to reduce the cost of activities for families over the summer holiday period.
Supplies within scope
The temporary 5% rate applies to three broad categories:
Children’s meals
- Applies to children’s meals supplied in restaurants, cafés and similar establishments.
- Meals must generally be marketed, priced and presented as intended for children.
Children’s admissions to events
- Includes admission for children to theatres, cinemas, concerts, exhibitions and shows.
Admission to family attractions
- Applies to all admission tickets (including adults) for qualifying attractions suitable for families with children.
- Includes attractions such as:
- Theme parks, amusement parks and fairs
- Zoos and animal attractions
- Museums and similar venues
- Soft play centres and comparable family‑focused attractions
Key features and boundaries
- The reduced rate replaces the standard 20% VAT rate for qualifying supplies during the specified period.
- The measure is temporary and introduced via statutory instrument.
- For catering and cultural/event supplies:
- The relief is generally limited to children’s products (i.e. those clearly aimed at children)
- Adult supplies remain standard‑rated unless part of a qualifying family offering
- For attractions:
- The reduced rate applies more broadly to tickets for all visitors, provided the attraction qualifies as family‑focused
- The rules apply UK‑wide across England, Scotland, Wales and Northern Ireland.
Practical implications for businesses
Businesses in hospitality, leisure and culture sectors should consider the following:
Pricing and commercial strategy
- Businesses may choose whether to pass on the VAT reduction to customers (e.g. reduced ticket prices or meal prices),or retain the margin benefit.
Systems and compliance
Systems will need to accommodate:
- A rate change to 5% from 25 June 2026
- A reversion to 20% from 2 September 2026
Particular care is needed around:
- Advance bookings or prepayments spanning the change
- Mixed supplies (e.g. adult and child elements, bundled tickets)
Scope assessment
Businesses should ensure:
- Supplies are correctly classified as within or outside scope
- Children’s meals are clearly differentiated and evidenced (menus, pricing, marketing)
Wider context
This measure forms part of the Government’s “Great British Summer Savings” initiative, intended to encourage consumer spending on family activities during the summer period and support affected sectors.
Key takeaway
The temporary 5% VAT rate represents a short‑term but material opportunity and compliance risk for affected businesses. Early review of pricing, systems and contractual arrangements is essential to ensure the relief is implemented correctly and efficiently.
For further information see Revenue & Customs 5 (2026), reach out to me directly or speak to your usual HaysMac contact.
