Is your business ready to make the most of it?
Scheme runs 25 June – 1 September 2026
The Government has announced a temporary VAT savings scheme for family attractions and children’s dining this summer, which will see VAT reduced from 20% to 5% on qualifying activities.
For hospitality and leisure businesses, this is a genuine opportunity to combat rising costs and challenging trading by reviewing pricing and standing out in a competitive market during the busiest season of the year.
What qualifies for the reduced 5% rate?
· Admission tickets – Entry to amusement parks, water parks, zoos, museums, soft play, cinemas, theatres and concerts.
· Children’s menu meals – Meals served from a clearly marketed, separate children’s menu
How your business could benefit
There are a number of ways to take advantage of this new scheme, including:
· Lower prices for families by passing on the savings
· Improved margin flexibility by reviewing your pricing structure
· Competitive advantage by using the scheme creatively
A few things to plan for
The scheme does involve some operational steps worth getting right from the start.
Qualifying and non-qualifying sales sit side by side on the same bill, so tills, accounting systems and staff need to handle two VAT rates simultaneously and then revert cleanly on 1 September back to the current system.
Some categories, for example, pay-per-ride attractions, adult meals, season tickets and takeaways, do not qualify, so careful categorisation of each service or product matters.
The Competition and Markets Authority has new anti-profiteering powers under this scheme and so clear records of how you have applied the VAT cut are advisable.
We can help you get this right
While the VAT reduction is welcome, applying it correctly does require careful administration.
We can advise you on updating your systems to manage split-rate billing and ensure that you report VAT accurately during this period.
Our team can work through the detail with you, so you capture every benefit without the compliance headache.
