Summer 2026 VAT cut: what families and businesses need to know

Families planning days out this summer could see some welcome savings, following the Government’s announcement of a temporary VAT reduction on certain leisure activities and children’s meals.

From 25 June to 1 September 2026, VAT on a defined range of family attractions, children’s admission tickets and children’s restaurant meals will be reduced from 20% to 5%. The measure forms part of the Government’s Great British Summer Savings scheme and is intended to help reduce the cost of summer activities for households.

For businesses, however, the change brings practical points to consider. The relief is temporary, selective and time-limited, so it is important to understand what is covered, what is not, and what needs to be done before the scheme begins.

What is included in the VAT relief?

The reduced 5% VAT rate applies to specific supplies made during the relief period. This includes children’s meals in restaurants, provided they are served for consumption on the premises and are from a dedicated children’s menu, marketed and priced as children’s meals. It also applies to children’s and family tickets for certain cultural and entertainment events, including cinemas, theatres, exhibitions, shows and concerts.

A wider range of family attractions is also covered. This includes admission tickets for both adults and children to qualifying venues such as:

• theme parks, amusement parks, water parks and fairs
• zoos, aquariums, wildlife parks and farm visitor attractions
• museums, heritage sites, planetariums and botanical gardens
• soft play centres, indoor bounce parks and other indoor play facilities
• circuses and adventure parks
• observation attractions, such as viewing platforms and observation wheels

The relief applies across the UK, including England, Wales, Scotland and Northern Ireland.

How much could families save?

The actual saving for families will depend on whether businesses pass the VAT reduction on through lower prices. Where the full saving is reflected in the price paid by customers, the Government has indicated that a family of two adults and two children could save around:

• £20 on theme park tickets
• £17 on a wildlife park visit
• £11 on circus tickets
• £9 on aquarium entry
• £6 on a farm attraction
• £2 on soft play
• £2 on children’s restaurant meals
• £1.50 on children’s cinema tickets

Individually, these savings may be modest, but for families planning several activities over the school holidays, they could make a noticeable difference.

In England, the Government has also announced that children aged 5 to 15 will be able to travel free on local buses throughout August, which may help reduce the overall cost of days out further.

What should businesses do now?

If your business supplies activities, tickets or meals that may fall within the scope of the relief, preparation will be key. The change begins on 25 June 2026, so affected businesses should review their pricing, systems and VAT treatment in advance.

Check whether your supplies qualify

The relief does not apply to every summer activity or hospitality sale. It is limited to the categories set out in the legislation and HMRC guidance.

Businesses should not assume they qualify simply because they operate in the leisure, hospitality or visitor attraction sector. For example, sports facilities are not generally included, although some sports-related supplies may already have separate VAT treatment.

If your business offers a mix of qualifying and non-qualifying services, you will need to identify exactly which sales fall within the temporary 5% rate.

Update tills, EPOS and booking systems

Businesses will need to make sure their systems apply the correct VAT rate from 25 June.

This may include updating:

• EPOS and till systems
• accounting software
• invoicing templates
• online booking platforms
• ticketing systems
• website pricing pages

For restaurants and cafés, staff may need guidance on how to apply the reduced rate to children’s meals while continuing to apply the normal VAT rate to other food and drink sales.

For venues and attractions, online booking systems may need to apply the reduced rate for eligible tickets during the relief window, then revert back after 1 September.

Consider pricing and customer communication

The Government expects businesses to pass the benefit of the VAT reduction on to customers where possible.

For businesses, this is not only a compliance and reputational consideration. Lower headline prices may also help encourage bookings, footfall and secondary spend during the summer period.

Clear communication will help avoid confusion, especially where only some products, meals or tickets qualify.

Review advance bookings and season tickets

Businesses that have already sold tickets for visits or events taking place during the relief period may need to consider how those sales are treated.

HMRC guidance indicates that businesses may choose to apply the reduced rate or refund the VAT saving to customers in some circumstances, but this will not always be required for sales made before the announcement.

Season tickets and annual passes also need careful consideration. Where a ticket covers a period outside the relief window, it may not qualify unless it is priced in the same way as a single admission ticket.

Keep clear records

Accurate record keeping will be essential.

Businesses should be able to distinguish between sales charged at 5%, sales charged at 20%, and any VAT-exempt income. This will be particularly important for organisations offering a combination of eligible and non-eligible activities.

Charities operating museums, heritage attractions or similar venues should also check their position carefully. If admission income is already VAT exempt, there may be no VAT saving to pass on to visitors. You can read our charity specific blog here.

A short-term change, but not one to overlook

Although the relief is temporary, the practical impact could be significant for affected businesses.

The VAT rate will only apply for a little over two months, but businesses may need to update systems, train staff, amend pricing, adjust online booking platforms and maintain separate records throughout the period.

Errors could lead to VAT reporting issues later, so it is worth taking advice before the scheme starts if there is any uncertainty.

If you run a restaurant, visitor attraction, events venue or leisure business and are unsure whether the reduced rate applies to you, our VAT team can help you review your position and prepare for the change.