Summer 2026 VAT cut – what families and businesses need to know

Families planning days out this summer could benefit from some welcome savings following the government’s announcement of a temporary VAT reduction on selected leisure activities and children’s meals.

Between 25 June and 1 September 2026, VAT on a defined range of family attractions, children’s admission tickets and children’s restaurant meals will be reduced from 20% to 5%.  This forms part of the government’s ‘Great British summer savings scheme’, designed to help reduce the cost of summer activities for households.

For businesses however, the change is temporary and targeted, meaning careful preparation is required.

What Is Included?

The reduced rate of VAT applies to specific supplies during the relief period. This includes children’s meals consumed on the premises provided they are from a dedicated children’s menu and clearly marketed and priced as such.

It also covers children’s and family tickets for certain cultural and entertainment events, including cinemas, theatres, exhibitions, shows and concerts.

A wide range of attractions is included, such as:

• theme parks, amusement parks, water 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 similar facilities
• circuses and adventure parks
• observation attractions, such as viewing platforms and wheels

The relief applies across the UK.

Potential savings for families

Where businesses pass on the VAT reduction, the government estimates that a family of two adults and two children could save approximately:

• £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 on children’s meals
• £1.50 on cinema tickets

In England, children aged 5 to 15 will also be able to travel free on local buses throughout August, further reducing costs.

What should businesses do?

Businesses should first confirm whether their supplies qualify, as not all leisure or hospitality services are included. For example, sports facilities are generally excluded.

Where both qualifying and non qualifying services are offered, it will be important to identify which sales fall within the 5% rate.

Systems will also need to be updated to apply the correct VAT treatment from 25 June, including tills, accounting software, booking platforms and pricing pages. Staff training may be needed to ensure the correct rates are applied.

Advance bookings and season tickets should also be reviewed. HMRC guidance suggests businesses may apply the reduced rate or refund the VAT saving in some cases, though this will not always be required.

A short term change with real impact

Although the relief lasts just over two months, it will require system updates, pricing adjustments and clear record keeping. Businesses that prepare early will be best placed to manage the change and benefit from increased demand over the summer period.