VAT Rate of 5% on Kids’ Meals, Tickets & Family Attractions
Summer 2026 VAT Reduction – Key Points for Businesses
The government has announced a temporary reduction in VAT from the 20% rate to a VAT rate of 5% on certain family-focused activities over the summer holiday period.
This applies from 25 June to 1 September 2026 and replaces the usual 20% rate for qualifying supplies (subject to legislation being enacted).
For businesses in hospitality, leisure and attractions, this presents both an opportunity and a need to review how supplies are structured and priced.
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What Qualifies for the Reduced VAT Rate of 5%?
The temporary reduction to the VAT Rate of 5% applies to three main categories; children’s meals, children’s and family tickets and also admission to attractions.
Children’s Meals (Eat-in Only)
Children’s meals will qualify for the reduction where they are clearly marketed and sold as children’s meals but also provided for consumption on the premises. The distinction is important here, it is not about the age of the person eating the meal, but how the meal is presented and sold.
Typical examples include children’s set menus (for example, a main, drink and dessert) and meals listed on a dedicated children’s menu.
Points to watch:
Simply offering a smaller or cheaper adult meal will not qualify
Takeaway food remains standard-rated
Meals including alcohol are excluded
Add-ons or upgrades may still be standard-rated
In practice, presentation and marketing are key. A meal served to an adult from a children’s menu could still qualify, whereas an unlabelled half-portion would not. Businesses should review how their menus are structured and described before the rate takes effect.
Children’s Tickets and Family Tickets
The reduced VAT rate of 5% applies to children’s tickets for cinemas, theatres, shows, concerts and exhibitions, as well as family tickets where at least one child is included. Where a family ticket is sold at a single price, the entire package, including the adult admission, can qualify for the VAT rate of 5%.
However, standard adult-only tickets remain at 20%, and group tickets that are not specifically marketed as family tickets do not qualify. Venues and operators should ensure that family ticket products are clearly defined and consistently promoted as such to qualify for the reduced rate.
Admission to Attractions (all visitors)
For certain types of attraction, the reduced VAT rate of 5% applies to all admission, not just children. This is one of the more significant aspects of the relief.
Qualifying attractions include:
Theme parks, water parks and amusement parks
Zoos, aquariums and wildlife attractions
Museums, heritage sites and nature reserves
Soft play centres and indoor play facilities
Adventure and observation attractions
The key point is that the relief only applies only to the admission charge itself. Food, retail purchases, and other extras sold within the attraction remain subject to their normal VAT rate. Where admission is bundled with the other elements, business will need to apportion the price accordingly.
What is excluded?
The reduced rate does not apply to sport. This covers a broader range of supplies than might initially be apparent including:
Event tickets for sporting events
Facility Hire
Participation in physical activities
Season tickets that allow entry after the 1st of September, if they are more expensive than a single day entry
Businesses operating across both leisure and sporting activities should take care to apply the correct rate to each supply and avoid inadvertently applying the reduced rate to excluded items.
Practical Considerations for Businesses
There are three main areas that businesses should consider with the new reduced VAT rate of 5%.
Marketing and Pricing
This is a critical consideration for businesses. Whether a supply qualifies will depend heavily on how it is presented, priced and promoted. Making small changes, such as, how a menu item or ticket is described can directly affect the VAT treatment. Businesses should not assume that the nature of the customer or the product along is enough; the way the supply is structured and communicated matters equally.
Packages and Bundled Offers
Where meals or admissions are sold alongside other goods or services, only the qualifying elements benefit from the reduced VAT rate of 5%. The remainder must be treated under normal VAT rules. This may require a careful allocation of pricing between qualifying and non-qualifying elements, particularly where bundled offers are common, for example, an attraction entry combined with a meal deal.
Timing of Supplies
The reduced rate applies based on the date of admission or consumption, not simply when payment is made. Tickets purchased in advance for for dates after the 1st of September 2026 remain at 20%, advance bookings may still qualify, depending on how the VAT is accounted for. Where VAT has already been charged at 20% on supplies that now fall within the reduced VAT rate of 5%, businesses may need to adjust their VAT accounting and consider whether customer refunds are required.
What are the Next Steps?
Given the short window between the announcement and implementation of the reduced VAT rate of 5%, businesses should act promptly. Key priorities include:
Reviewing menus and ticket structures to identify qualifying supplies
Check that qualifying items are clearly and consistently marketed as such
Ensure that VAT systems and pricing reflect the temporary rate
Assess the commercial opportunity – pricing strategy, promotions, etc
As this is a time-limited relief aimed at supporting family spending over the summer. With the right approach, businesses can benefit commercially and ensure compliance. However, the detail does matter, particularly around the definitions and presentation.
If you would like to talk through how this change in VAT rate applies to your business or to check your approach, please reach out to Helen Smith below.
