To make family days out more affordable and support businesses, the government has announced the Great British Summer Savings scheme.
The temporary reduced VAT rate
A temporary, reduced VAT rate of 5% will apply over the summer holidays to selected activities and services for families with children, replacing the standard 20% rate. The government expects businesses to pass these savings on to customers.
The temporary rate is effective from 25 June 2026 to 1 September 2026 inclusive. It applies to certain supplies of children’s meals eaten on the premises, children’s admission to theatres, cinemas, concerts, exhibitions, and shows, and admission tickets to family attractions like amusement parks, fairs, adventure parks, and soft play areas.
Qualifying rules and practical steps
Children’s meals must be supplied for consumption on the premises, served from a dedicated children’s menu, and marketed as intended for children. Where meals or admissions are bundled with other goods for a single price, normal VAT rules determine liability for non-qualifying elements.
Businesses will need to pivot rapidly to update systems and revert to normal rules when the scheme ends. Please don’t hesitate to get in touch for help with this or any other VAT issue.
