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This summer, the government has cut VAT from 20% to 5% on a range of family-friendly spending. The relief runs from 25 June to 1 September 2026, and it touches everything from cinema trips to theme park tickets. Here’s what’s actually included, and if you run a hospitality or leisure business, what you need to get right before peak summer trading hits.
What’s covered
The reduced rate applies to a specific list of family spending, not VAT in general. It covers children’s meals ordered from a children’s menu and eaten on the premises, children’s and family tickets for cinema, theatre, shows and concerts, and admission tickets, for both adults and children, to attractions such as theme parks, museums, zoos and soft play centres.
A few things sit outside the relief. Sports facilities aren’t included, nor is anything that was already VAT-exempt, such as many not-for-profit museums. Food and drink bought separately from a children’s meal deal doesn’t qualify either, and season tickets priced above a standard single-entry ticket fall outside the scheme too.
There’s a useful pairing this summer: free bus travel is also available for children aged 5 to 15 in England throughout August. Families planning a few days out could combine both savings into a single, cheaper trip.
One thing worth knowing: the size of the saving depends on whether a business actually passes the VAT cut on through lower prices. It isn’t automatic, so it’s worth checking menus and ticket prices rather than assuming a discount has been applied.
For business owners: what to get right
If you run a café, restaurant, cinema, attraction or venue, the scheme brings a few practical complications, particularly given how quickly it was introduced.
Timing is based on the visit, not the payment. The reduced rate applies according to the date of admission or consumption, not the date a customer paid. This matters for advance bookings. If you took a booking at the standard 20% rate for a date that now falls within the relief period, you’re not obliged to refund the difference automatically. But if you choose to apply the lower rate retrospectively to that booking, any VAT you overcharged needs to be refunded to the customer.
How you market a product affects its VAT treatment. A meal only qualifies as a children’s meal if it’s clearly marketed, priced and presented as one. The same principle applies to family tickets. It’s the structure and presentation of what you’re selling that determines the VAT rate, not simply the fact that a child is involved.
Getting it wrong carries real risk. This isn’t a relief where a generous interpretation is the safe option. If you apply the reduced 5% rate where the standard 20% should actually apply, HMRC can still pursue the underpaid VAT. Given the short notice businesses had to implement this change, errors are understandable, but they’re not necessarily forgiven.
What to do now
If you haven’t already, review your menus, ticket categories and till or booking system settings to make sure the right items are flagged at the right rate. It’s also worth deciding in advance how you’ll handle any pre-relief-period bookings for dates that now fall within the scheme, so your team isn’t making that call inconsistently at the till.
If you’d like us to check how the scheme applies to your business specifically, get in touch before the busier summer weeks arrive. It’s a much easier conversation to have now than after a VAT inspection. Book a free consultation with us today.