Temporary change of VAT for children’s meals, tickets and family attractions

The Great British Summer Savings scheme was announced on 21 May 2026.

Chancellor Rachel Reeves has unexpectedly announced the government’s Great British Summer Savings scheme, aimed at lowering costs for families in time for the summer holidays. It is a positive message in trying to reduce costs and incentivise consumers to spend on UK hospitality and attractions over the summer period. 

With only five weeks until implementation, there is limited time for organisations to review, understand the scope of the changes, assess any “grey areas” and update their processes to ensure VAT is accounted for correctly.   

The government expects the temporary rate reduction to increase footfall for organisations, while also anticipating that the VAT savings will be passed on to customers.  

What has changed? 

The VAT rate on certain activities will be reduced from 20% to 5% for admissions from 25 June to 1 September 2026 (inclusive). The reduced rate will apply across England, Wales, Scotland and Northern Ireland to: 

• children’s meals served in restaurants for consumption on the premises
• children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions
• admission tickets, for both children and adults, to a range of attractions, including amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.

There are some limitations to the measures, including:

• the government has made it clear that the reduced rate will apply to those supplies that are marketed, priced and presented as intended for children
• the reduced rate will not apply to admissions that are already exempt, sporting activities and takeaway food.  

For some organisations, it will be clear as to whether their supplies fall within the reduced rate measures. For others, it could be less so. The legislation enabling the reduced VAT rate is yet to be published, and organisations should consider this, together with the commentary issued by HMRC, to understand the impact on their activities. 

What if I supply bundles or mixed supplies?

The reduced rate will apply only to the part of the supply that falls within the descriptions above. Any other elements should be treated according to their normal VAT liability. 

Where admission, meals or tickets are supplied together with other goods and/or services for a single price, organisations should continue to apply the usual VAT rules to determine the liability. 

How does it apply to fees received in advance? 

Where fees are received in advance for admissions taking place during the reduced-rate period, organisations may choose to apply the 5% VAT rate. This also applies to fees received before the announcement, so organisations will need to decide whether to apply the reduced rate in these cases, taking into account the practical and commercial implications.    

If VAT has already been accounted for at 20% and the organisation opts to apply the 5% rate, adjustments will be required to correct the VAT position. Where this is done, the government expects that the benefit of the reduction will be passed on to customers by refunding the difference.  

Organisations should continue to apply the usual time of supply rules when determining what VAT rate applies to their supplies. 

Who will this affect? 

The government expects that the announcement will affect a range of sectors, although this list is not exhaustive, including: 

• restaurants, cafes and similar establishments
• cinemas, theatres, exhibition and performance venues
• operators of family-focused attractions, including circuses, fairs, amusement parks, theme parks, adventure parks, water parks, zoos and other animal attractions, soft play centres and observation attractions
• museums and similar cultural attractions. 

What do affected organisations need to consider?  

To prepare for implementation on 25 June 2026, organisations should consider the following key actions.

• Identify affected supplies: review the supplies made to determine which fall within the scope of the reduced rate. 
• Assess bundled and mixed supplies: revisit the VAT treatment of packages and bundles and consider how the temporary reduced rate affects the VAT applicable.  
• Review pricing strategy: consider how the change in VAT rate may impact pricing. Will the VAT saving be passed on in full or in part? 
• Consider advance payments: decide whether to apply the reduced rate to fees received in advance for admissions during the qualifying period and ensure this is applied consistently. 
• Update systems and processes, and communicate changes internally: ensure that systems, invoicing and accounting processes are configured to apply the correct VAT rate at the correct time and that relevant teams are aware of the changes. 
• Consider VAT returns: the measures will be introduced in the middle of a VAT return period, so care should be taken to ensure VAT is applied correctly. 
• Document your position and decisions: keep a clear audit trail of decisions taken in case of future HMRC queries. 

HMRC’s initial commentary about the VAT rate change can be found in Revenue and Customs Brief 5 (2026): Temporary reduced rate of VAT for children's meals, tickets and family attractions.

To discuss how the new measures may affect you, please get in touch with your usual Crowe contact.