Temporary VAT Cut for Children’s Meals and Family Attractions
Temporary VAT Cut for Children’s Meals and Family Attractions
The government has announced a temporary reduction in VAT from 20% to 5% on certain children’s meals, family attraction tickets and children’s admissions during the 2026 summer holidays.
The temporary reduced rate will apply from 25 June 2026 to 1 September 2026 inclusive and is designed to help reduce costs for families during the school holidays.
The changes were announced by the Chancellor on 21 May 2026 and are expected to be introduced through a statutory instrument.
For businesses in hospitality, leisure and entertainment, this could create both opportunities and administrative challenges, particularly around pricing, EPOS systems, VAT accounting and promotional offers.
Which Businesses Could Be Affected?
The temporary reduced VAT rate may apply to businesses including:
Restaurants and cafés
Cinemas and theatres
Theme parks and adventure parks
Zoos and wildlife attractions
Soft play centres
Museums and exhibitions
Family entertainment venues
If your business sells family-focused admissions or children’s catering services, it is important to review how your supplies are currently marketed and priced.
What Supplies Qualify for the 5% VAT Rate?
The relief applies to three main categories:
1. Children’s Meals
The reduced VAT rate applies where:
The meal is specifically marketed as a children’s meal
It is supplied for consumption on the premises
It is provided by a restaurant, café or similar catering establishment
For example, a dedicated children’s menu with a fixed-price meal deal would usually qualify.
However, the relief does not apply to:
Smaller portions of adult meals
Lower-calorie options
Shared meals
Standard takeaway food
Meals including alcohol
A key point is that HMRC will look at how the meal is marketed, presented and priced, rather than who actually consumes it.
2. Children’s Cinema, Theatre and Exhibition Tickets
The reduced rate applies to children’s admission tickets for:
Cinemas
Theatres
Concerts and shows
Exhibitions
Where venues offer separate adult and child pricing, only the children’s tickets qualify.
However, HMRC has confirmed that family tickets can qualify for the reduced rate in full, including the adult admissions within the package, provided the ticket is clearly marketed as a family admission.
3. Family Attractions
The temporary 5% rate also applies to admission charges for many family-focused attractions, including:
Theme parks
Water parks
Adventure parks
Zoos and aquariums
Soft play centres
Indoor play facilities
Museums and heritage attractions
Observation attractions
Importantly, this relief applies to all admissions, regardless of the visitor’s age, where the attraction itself qualifies.
What Does Not Qualify?
The relief does not apply to:
Sporting events
Sports participation
Use of sports facilities
Merchandise and retail sales
Food and drink sold separately from qualifying admissions
Upgrades and add-ons outside qualifying packages
Businesses will still need to apply the normal VAT rules to mixed supplies and bundled offers.
Important VAT Timing Rules
The reduced rate only applies to admissions taking place between:
📅 25 June 2026 and 1 September 2026
This means:
Tickets purchased in advance for visits during the qualifying period may qualify
Tickets purchased during the summer for admissions after 1 September 2026 will remain standard-rated
HMRC has also confirmed that businesses may adjust VAT already accounted for on advance bookings if they choose to pass the saving on to customers.
What Should Businesses Do Now?
Businesses affected by these changes should consider:
Reviewing EPOS and Booking Systems
Ensure VAT rates can be updated correctly for qualifying supplies.
Checking Product and Ticket Descriptions
Eligibility depends heavily on how products are marketed and presented.
Reviewing Family Packages and Bundles
Some family packages may now qualify for the reduced rate where they previously did not.
Updating VAT Accounting Processes
Businesses may need to adjust VAT returns and account for changes to advance bookings.
Communicating Pricing Changes
Many businesses may wish to highlight reduced prices or temporary summer offers to customers.
Final Thoughts
While the temporary VAT reduction is intended to support families during the summer holidays, it also introduces complexity for affected businesses.
The rules rely heavily on how products and admissions are marketed and structured, meaning careful review is essential to ensure the correct VAT treatment is applied. For more information visit:
If you operate in hospitality, leisure or entertainment and are unsure how these temporary measures affect your business, our team at PJE can help review your VAT treatment and accounting processes.
👉 Get in touch with PJE for advice on how these temporary VAT changes may impact your business.
Posted - 28 May 2026