HMRC has announced that from 25 June to 1 September 2026, a temporary 5% VAT rate will apply to a range of supplies aimed at families with children during the school summer holidays. This replaces the standard 20% rate for qualifying supplies within that window. At the time of writing, HMRC has not published the legislation, but has said the relief should apply as follows.

Note that the change affects those suppliers required to charge VAT. Some bodies are entitled to exempt admission charges- these will not become taxable as a result of this change.

What’s covered?

The reduced rate applies to three broad categories:

Children’s meals — where a meal is listed on a dedicated children’s menu and served on the premises. The whole package qualifies if supplied for a single inclusive price (including a non-alcoholic drink). Takeaways, smaller portions of adult meals, and items not explicitly presented as children’s meals do not qualify.

Children’s tickets for cinemas, theatres, shows and exhibitions — only tickets marketed and sold specifically as children’s admissions qualify. Family tickets (including adult admissions) also qualify in full if they are sold as a family package.

Admission to family attractions — so long as the attraction is suitable for families with children, this one applies to all customers regardless of age, covering theme parks, zoos, soft play centres, museums, adventure parks, aquariums, circuses, and observation attractions. The reduced rate applies to the admission charge only, food, merchandise and other extras remain standard-rated.

Key practical points for affected businesses

The rate applies based on the date of admission, not the date of payment, so tickets bought now for visits after 1 September remain standard-rated. However, businesses can opt to apply the lower rate to advance payments already made, and should refund any excess VAT to customers where they do so.

Season passes and multi-visit tickets only qualify if they are priced the same as a standard single-entry ticket and solely cover the relief period.

Sporting events and activities are excluded entirely.

It’s worth noting that businesses aren’t obliged to pass the saving on to customers. If you’re a parent planning a day out this summer, it’s worth checking whether the provider has actually reduced their prices before assuming you’ll see the benefit.

What should you do now?

If your business falls within scope, or you advise clients who do, there are steps to take before 25 June: reviewing how meals and tickets are marketed and presented, updating pricing and accounting systems, and checking whether advance bookings need to be adjusted. Care will also need to be taken once the relief period is over, and the VAT due reverts to 20%.

Our VAT team can help you work through the detail. Get in touch to find out more.