From 25 June to 1 September 2026, VAT on a range of family activities and children’s restaurant meals will be temporarily cut from 20% to 5%.

We want to make sure our individual clients and the businesses we support understand exactly what this means in practice.

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What’s Covered?

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The reduced 5% VAT rate will apply to:

Children’s meals served in restaurants for consumption on the premises, specifically meals served from a dedicated children’s menu and marketed and priced as such.

Children’s and family tickets for cinemas, theatres, exhibitions, shows and concerts.

Admission tickets (children and adults) to a wide range of attractions, including:

• Theme parks, water parks, amusement 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 indoor play facilities
• Circuses and adventure parks
• Observation attractions such as viewing platforms and observation wheels

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The relief applies across England, Wales, Scotland and Northern Ireland, with the start date aligned to the beginning of the Scottish school summer holidays.

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What Could Families Actually Save?

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If businesses pass the full saving on at the till, a family of two adults and two children could save:

• £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 off children’s meals at a restaurant
• £1.50 on cinema tickets for the children

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These aren’t life-changing sums individually, but they add up, and at a time when household budgets remain under pressure, every bit helps.

On top of this, children aged 5 to 15 in England will be able to travel free on local buses throughout August, making it easier and cheaper to get out and enjoy these activities.

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What Does This Mean If You Run a Business?

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If your business falls within the eligible categories, you will need to act ahead of 25 June. Here is what to think about:

Updating your systems.

Your EPOS system or till, accounting software and invoicing will need to be configured to apply the 5% rate to qualifying sales during the relief period. If you sell admission tickets through a website or online booking platform, those systems will also need to be updated to reflect the reduced rate from 25 June. Make sure everything is tested and ready before the scheme begins.

Advance purchases and season tickets.

If you have already sold tickets for events or visits that fall within the relief window, you may choose to apply the 5% rate or refund the VAT saving to customers, but this is optional for pre-announcement sales. Season tickets that cover periods outside the relief window will not qualify unless they are priced the same as a single-entry ticket.

Passing the saving on.

The Government expects eligible businesses to reflect the VAT cut in the prices customers pay. Beyond the compliance angle, doing so is also a sensible commercial decision as lower prices tend to drive greater footfall, which can more than offset the reduced margin.

Record keeping.

You will need clear records distinguishing eligible sales from non-eligible ones during the period. This is especially important for businesses that offer a mix of qualifying and non-qualifying services.

The practical burden on businesses and charities.

While the intention behind the relief is welcome, the implementation challenges for affected businesses are significant.

Hospitality businesses will need to reconfigure their EPOS systems or tills to apply the lower rate selectively. Where adults and children are dining together, staff will need to know how to correctly identify and split qualifying portions of the bill.

Venues selling event tickets online face an added complication: booking systems and websites will need to be updated to apply the reduced rate, only to be reverted again at the start of September.

The burden falls most heavily on charities operating museums, heritage sites, and similar attractions.

It is also worth noting that charities which already benefit from VAT exemption on their admission income will not be in a position to pass on a reduced price to visitors, since they are not charging VAT in the first place.

Throughout the relief period, businesses will also need to maintain clear and auditable records separating eligible from non-eligible sales.

Sports facilities are not included in the relief, although certain sports supplies are already VAT exempt in other circumstances. More broadly, it is worth remembering that the relief does not cover all summer activities — only those specifically listed in the legislation. Businesses should not assume they qualify without checking their category against the published guidance.

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A Temporary Measure, But One to Take Seriously

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This is a short-term policy, and the Government has been clear that it will not be extended beyond 1 September. Final costings are subject to Office for Budget Responsibility certification. But temporary does not mean trivial. Getting your VAT treatment wrong during this period could create compliance headaches further down the line.

If you are unsure whether your business qualifies, or you need help updating your systems and processes ahead of the summer, our team are here to help.

Further HMRC guidance for businesses is available on GOV.UK. For tailored advice, speak to your Jerroms adviser.

Sources: All figures, eligibility criteria, and scheme details are drawn from official government publications: (1) HM Treasury, “Great British Summer Savings 2026: Family activities VAT relief fact sheet”, published 21 May 2026; (2) HMRC, Revenue and Customs Brief 5 (2026): Temporary reduced rate of VAT for children’s meals, tickets and family attractions. The family savings figures are taken directly from the HM Treasury fact sheet and assume full pass-through of the VAT reduction by the business. Final costings are subject to OBR certification.

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