22nd May 2026
The Government has announced a temporary reduction in VAT on a range of family attractions and children’s activities as part of its wider cost-of-living support measures.
The initiative, known as the “Great British Summer Savings” scheme, is intended to help reduce the cost of family days out during the school holidays, while also supporting businesses operating across the hospitality, tourism and leisure sectors.
Under the new rules, the VAT rate on qualifying supplies will reduce from 20% to 5% between 25 June and 1 September 2026.
The temporary reduced rate is expected to apply to a range of family attractions and activities, including:
Certain children’s meals sold by restaurants, cafés and similar venues may also qualify for the reduced VAT rate.
The Government hopes the temporary reduction will encourage more families to enjoy local attractions during the summer holidays, while also increasing visitor numbers and supporting businesses during a key trading period.
For businesses, the changes may provide an opportunity to attract additional customers over the summer months. However, businesses affected by the new rules may wish to review:
As with any VAT change, it is important that businesses understand how the rules apply to their specific circumstances and ensure the correct VAT treatment is used, particularly where package pricing or mixed supplies are involved.
How can we help?
If you would like advice on VAT or any other business tax matters, please contact a member of the Thompson Jenner team.
