As part of measures announced by the Chancellor on 21 May 2026, a temporary reduction in VAT has been introduced for qualifying children’s meals and admission to certain family attractions. The aim is to help reduce costs for families during the summer holidays while encouraging spending across the hospitality, leisure and cultural sectors.
From 25 June 2026 until 1 September 2026 (inclusive), eligible supplies that would normally attract VAT at the standard rate of 20% qualify for a reduced rate of 5%. The standard 20% rate will apply again from 2 September 2026.
If your business operates within the hospitality or visitor attraction sector, it is important to understand exactly which sales qualify and which continue to be taxed at the normal rate.
Which supplies qualify for the temporary 5% VAT rate?
The temporary reduction applies to:
- Children’s meals served by restaurants, cafés and similar establishments.
- Children’s cinema tickets.
- Children’s theatre, show and concert tickets.
- Admission to qualifying family attractions.
Not every children’s product or admission automatically qualifies, so businesses should ensure they apply the correct VAT treatment.
Which children’s meals qualify?
The reduced VAT rate applies only where a meal meets both of the following conditions:
- It is marketed and sold specifically as a children’s meal.
- It is supplied as part of catering for consumption on the premises of a restaurant, café or similar establishment.
The way the meal is presented is important. HMRC looks at how the meal is described, marketed and priced rather than who actually eats it.
For example, if an adult purchases a children’s meal, the reduced VAT rate can still apply. On the other hand, an adult meal ordered for a child does not qualify simply because of who consumes it.
Meals that do not qualify
Some meals continue to be standard-rated despite being suitable for children.
Examples include:
- Smaller portions of adult meals.
- Lower-calorie menu options.
- Discounted adult meals.
- Shared meals intended for adults and children.
- Takeaway meals.
- Children’s meals supplied with alcoholic drinks.
Where the same meal appears on both an adult and children’s menu, the children’s version should be both smaller and lower priced. However, portion size alone is not enough to determine eligibility.
Meal deals and extras
Where a qualifying children’s meal is sold as a package including more than one course and a non-alcoholic drink, the temporary 5% VAT rate applies to the whole meal deal.
However, optional extras such as additional side dishes continue to follow their normal VAT treatment.
Meals that are already exempt from VAT, such as those supplied as part of certain educational services, remain exempt and are unaffected by these temporary changes.
As an illustration, a children’s meal that normally costs £12 could reduce to approximately £10.50 during the temporary VAT reduction.
Children’s cinema and theatre tickets
The temporary reduced VAT rate also applies to qualifying children’s admission tickets for:
- Cinemas
- Theatres
- Concerts
- Shows
To qualify, the ticket must be specifically marketed and sold as admission for a child.
Family tickets that include one or more children also qualify for the reduced rate. However, standard group tickets that are not family tickets do not.
Adult admission tickets continue to attract VAT at the standard rate.
For example, a children’s theatre ticket normally costing £30 could reduce to £26.25 during the temporary period.
Which attractions qualify?
The temporary VAT reduction also applies to admission charges for a wide range of family attractions.
Unlike children’s theatre and cinema tickets, this relief applies to all admissions, regardless of the visitor’s age.
Eligible attractions include:
- Theme parks
- Water parks
- Amusement parks
- Fairs (excluding pay-per-ride attractions)
- Adventure parks
- Museums
- Heritage sites
- Botanical gardens
- Nature reserves
- Planetariums
- Zoos
- Aquariums
- Wildlife parks
- Farm visitor attractions
- Soft play centres
- Indoor bounce parks
- Indoor play centres
- Observation towers
- Viewing platforms
- Observation wheels
The reduced VAT rate only applies to admission charges made between 25 June and 1 September 2026.
Attractions that are excluded
Not every leisure activity benefits from the temporary reduction.
The announcement specifically excludes sporting activities, which continue to follow the existing VAT rules.
Businesses should therefore review their admissions carefully before applying the reduced rate.
What should businesses do?
If your business is affected by these temporary measures, now is a good time to check that your systems have been updated correctly.
You should review:
- Point of sale systems.
- Accounting software.
- VAT coding.
- Website pricing.
- Promotional material.
- Staff guidance.
You’ll also need to ensure the standard 20% VAT rate is reinstated from 2 September 2026.
Applying the wrong VAT rate could create unnecessary administration and lead to corrections being required later.
Key Takeaways
- A temporary 5% VAT rate applies from 25 June to 1 September 2026.
- The relief covers qualifying children’s meals, children’s cinema and theatre tickets, and admission to selected family attractions.
- Not every children’s meal qualifies, so businesses should review how meals are marketed and sold.
- Sporting activities remain outside the scope of the temporary reduction.
- Businesses should ensure VAT systems are updated and remember to revert to the standard rate from 2 September 2026.
If you’re unsure how these temporary VAT changes affect your business or need help ensuring your VAT treatment is correct, Message Yorkshire Accountancy for tailored advice.
Frequently Asked Questions
When does the temporary 5% VAT rate apply?
The temporary reduced rate applies to qualifying supplies made between 25 June 2026 and 1 September 2026 inclusive. The standard 20% VAT rate resumes from 2 September 2026.
Do takeaway children’s meals qualify?
No. The temporary reduced VAT rate only applies to qualifying children’s meals supplied for consumption on the premises. Takeaway meals continue to follow their existing VAT treatment.
Does the reduced VAT rate depend on who eats the meal?
No. HMRC considers how the meal is marketed and sold rather than who consumes it. An adult buying a children’s meal can still benefit from the reduced rate if the meal otherwise qualifies.
Are family attraction tickets included?
Yes. Admission to qualifying family attractions benefits from the temporary 5% VAT rate regardless of the visitor’s age, provided the attraction falls within HMRC’s qualifying categories.
Do sporting attractions qualify?
No. Sporting activities are specifically excluded from the temporary VAT reduction and continue to follow the normal VAT rules.
What should businesses do before applying the reduced rate?
Businesses should update till systems, accounting software, VAT coding and pricing before applying the temporary rate. They should also ensure systems are changed back to the standard VAT rate from 2 September 2026.
