HMRC has announced a temporary reduction in the rate of VAT on certain supplies aimed at families with children during the 2026 summer holiday period.
From 25 June 2026 to 1 September 2026 inclusive, a reduced VAT rate of 5% will apply to qualifying children's meals, children's admission tickets and admission to a range of family attractions. The measure has been introduced to help reduce the cost of activities and services for families during the school summer holidays.
While the announcement will be welcomed by many families, it also creates important considerations for businesses operating in the hospitality, leisure, entertainment and attractions sectors.
What qualifies for the reduced rate?
The temporary 5% VAT rate applies to:
Children's meals consumed on the premises of restaurants, cafés and similar establishments
Children's cinema, theatre, exhibition, show and concert tickets
Admission to qualifying family attractions, including theme parks, zoos, aquariums, museums, soft play centres, adventure parks and similar venues
Children's meals
For a meal to qualify, it must be clearly marketed and presented as a children's meal and supplied as part of catering services for consumption on the premises.
HMRC has made it clear that simply offering a smaller portion of an adult meal will not automatically qualify. The meal must be specifically held out for sale as a children's option, typically through a dedicated children's menu.
Where a children's meal includes a non-alcoholic drink or dessert within a single fixed price, the whole package can qualify for the reduced rate.
However, businesses should note that:
Takeaway meals do not qualify
Optional upgrades and separately charged add-ons remain subject to their normal VAT treatment
Children's tickets and family packages
The relief applies to tickets specifically marketed and sold as children's admissions for cinemas, theatres, concerts, shows and exhibitions.
Importantly, HMRC has confirmed that where a venue offers a family ticket that includes one or more children, the entire package may qualify for the reduced 5% rate, including the adult admissions included within that family ticket.
Family attractions
The temporary reduction also applies to admission charges for a wide range of family-focused attractions, regardless of the age of the visitor.
Qualifying attractions include:
Theme parks and water parks
Zoos, wildlife parks and farm attractions
Museums and cultural attractions
Soft play and indoor play centres
Adventure parks
Observation attractions and viewing platforms
Circuses and fairs
The relief applies only to the admission charge itself. Food, merchandise, premium experiences and other separately charged items remain subject to their normal VAT treatment.
What is excluded?
One important exclusion is sport.
The reduced rate does not apply to:
Admission to sporting events
Participation in sporting activities
Use of sports facilities
Businesses involved in sport and leisure should therefore continue to apply their existing VAT treatment.
Practical considerations for businesses
Businesses affected by these changes should start preparing now.
Areas to review include:
Pricing structures and ticketing systems
EPOS and accounting software settings
Website and online booking platforms
Children's menu classifications
Family ticket packages
VAT accounting processes for advance bookings and prepayments
HMRC has also confirmed that businesses may need to make adjustments where customers have already paid at the standard 20% rate for qualifying admissions taking place during the relief period.
Our thoughts
The detail behind this announcement is likely to be just as important as the headline.
Businesses will need to look carefully at how their products are marketed and sold, as eligibility often depends on whether a meal or ticket is genuinely presented as being for children. A children's meal on a dedicated menu may qualify, while a smaller version of an adult meal may not. Similarly, family tickets may fall within the reduced rate, whereas standard group bookings may not.
For many businesses, the biggest task will be ensuring pricing structures, booking systems, EPOS software and VAT accounting processes can correctly identify qualifying sales during the relief period.
The temporary nature of the change also creates additional complexity. Businesses that have already taken bookings or sold tickets for the summer may need to review how VAT has been accounted for and whether adjustments are required.
If you operate in hospitality, leisure or visitor attractions, now is a good time to review your VAT treatment ahead of 25 June 2026. Taking advice early could help avoid errors and reduce the administrative burden once the new rate comes into effect.
For advice on how the temporary reduced VAT rate may impact your business, please contact us.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
