On May 21st, 2026, the Chancellor, Rachel Reeves, made some announcements about reducing VAT on some items between the period of June 25th, 2026 and September 1st, 2026. This is to help not only businesses, but also to ease some of the burden on families during this peak period.
These measures form part of the Government’s “Great British Summer Savings” scheme, and the reduced 5% rate runs from 25/06/2026 to 01/09/2026 inclusive, right across the UK. The detailed rules are set out in Revenue and Customs Brief 5 (2026), and they fall into three main areas: children’s meals, children’s tickets, and family attractions.
The changes announced include the following items, and the guidelines are very strict.
VAT on Children’s Meals reduced from 20% to 5%
From 25/06/2026 to 01/09/2026, Children’s Meals in restaurants and cafes will have a reduced VAT rate of just 5%. To determine whether the meal qualifies for the reduced rate, it must meet two very specific requirements:
- The meal is marketed, priced and presented as a children’s meal, and
- Supplied as part of catering services for consumption on the premises
A children’s meal is only eligible for the decreased VAT rate if it’s marketed, presented, and priced as a children’s meal. It is not based on who consumes it.
If a children’s meal is supplied as a fixed package (ie, including a drink), the whole package can qualify for the reduced VAT rate. However, if optional items, add-ons or upgrades are priced separately and don’t form part of the children’s meal, they remain subject to their normal VAT liability.
The reduced VAT rate does not apply to:
- Smaller or discounted versions of adult meals
- Shared meals for both adults and children
- Takeaway food
If a meal appears on both an adult and children’s menu, the children’s version would normally be differentiated by portion size or price. However, portion size alone is not a determining factor.
If the meal includes a non-alcoholic drink as part of the children’s meal, it will qualify for the reduced rate. If the meal includes an alcoholic drink, it will not be regarded as a children’s meal.
If a meal is exempt from VAT (i.e. it’s supplied alongside exempt education or care), it will be unaffected by the reduced VAT rate.
The main thing to remember is that for the children’s meal to qualify for the 5% reduced VAT rate, it must be marketed, priced and presented as a children’s meal, and the meal must be consumed on the premises.
VAT on Children’s Tickets reduced from 20% to 5%
The reduced rate also applies to children’s admission tickets for cinemas, theatres, concerts, shows, exhibitions, and soft play. As with meals, the ticket must be marketed and sold specifically as a child admission to qualify.
Where a family ticket is sold for a single price and includes at least one child admission, the reduced rate can apply to the whole ticket, including the adult admissions within that package.
VAT on Family Attractions reduced from 20% to 5%
Admission charges to family attractions also benefit from the 5% rate. This covers venues such as theme parks, amusement parks and fairs, zoos, aquariums and wildlife attractions, circuses, museums (where not already exempt), and indoor or adventure play facilities.
A few important points apply here:
- The reduced rate applies to the right of admission only. Food, merchandise, and upgrades sold separately keep their normal VAT treatment.
- Where a supply is already exempt from VAT (for example, under the cultural exemption), the reduced rate will not apply.
- Sporting activities, whether taking part or spectating, and the use of sports facilities, are excluded.
Season tickets and advance bookings
Season tickets or passes allowing repeat entry outside the 25/06/2026 to 01/09/2026 window will not qualify unless they are priced the same as a standard single-entry ticket. Tickets allowing repeat entry solely within the qualifying period may qualify.
For timing, the admission itself must take place within the period. Tickets bought during the period for use after 1st September do not qualify, although businesses can choose to apply the reduced rate to prepayments.
What this means for your business
If you operate in hospitality, leisure or visitor attractions, the short lead-in time means systems and pricing may need updating quickly. In practice, you should identify which of your supplies qualify, review how they are marketed, priced and presented, and make sure mixed or bundled supplies are split and taxed correctly to avoid misapplying the rate.
The measure will be brought in through a statutory instrument, so some details may change before the legislation is finalised.
If you would like help reviewing how the temporary rate affects your business, please contact me, and we can have a chat.