From 25 June 2026 to 1 September 2026 inclusive, a temporary, UK-wide reduced VAT rate of 5% (instead of the standard 20%) applies to certain children's meals eaten on the premises, children's and family admission tickets, and admission charges to family attractions. It is announced in HMRC's Revenue and Customs Brief 5 (2026), branded "Great British Summer Savings 2026". The cut is temporary: qualifying supplies revert to their normal rate from 2 September 2026.
If you run a soft play centre, a cafe with a kids' menu, a zoo, a museum, a cinema or an amusement park, this directly affects the VAT you charge for ten weeks this summer. Below is exactly what qualifies, what doesn't, how to handle mixed supplies, a worked example, and the practical steps to update your tills and revert cleanly afterwards.
What is the Great British Summer Savings 2026 VAT cut?
It is a time-limited reduction in the VAT rate from 20% to 5% on a defined list of hospitality, leisure and tourism supplies aimed at families. It only changes the rate on those supplies during the window, it does not change registration rules, your VAT scheme, or how you file your return. Only VAT-registered businesses charge and reclaim VAT; the registration threshold remains £90,000 of taxable turnover on a rolling 12-month basis.
Because this is a reduced rate (not a zero rate or exemption), you still record the supply on your VAT return, you simply apply 5% output VAT instead of 20% for the qualifying portion during the window.
What qualifies at 5% vs what stays at 20%?
The Brief is specific. Use the table below as your quick reference, then read the mixed-supply rule that follows, it is where most errors happen.
| Qualifies at 5% (25 Jun – 1 Sep 2026) | Stays at normal rate (usually 20%) |
|---|---|
| Children's meals "held out for sale only as a meal for children", supplied as catering for consumption on the premises (soft drinks in the package included) | Takeaway food, and smaller portions of an adult meal |
| Children's admission tickets to cinemas, theatres, shows, concerts and exhibitions marketed and sold as children's tickets | Standalone adult tickets to the same events |
| Family packages, on the qualifying (children's) element | Any meal that includes alcohol |
| Admission charges for all customers (any age) to: amusement parks and fairs, circuses, adventure parks, museums, zoos, aquariums, soft play centres and observation attractions | Sporting activities and sports-facility use (spectating or participating) |
| , | Supplies already exempt or zero-rated (e.g. the cultural exemption for not-for-profit museums, zoos and theatres, unaffected) |
| , | Pay-per-ride attractions, and goods/services bundled with admission (food, merchandise) |
| , | Season passes / repeat-entry tickets allowing entry outside 25 Jun – 1 Sep, unless priced the same as a single-day ticket |
Two points catch people out. First, the cultural exemption is unchanged, if your museum or theatre admission was already exempt as a not-for-profit, it stays exempt; this reduced rate doesn't override that. Second, a season pass that lets a customer in after 1 September generally stays at the normal rate, unless it's priced the same as a single-day ticket.
How does the mixed supply rule work?
A "mixed supply" is one transaction containing more than one component with different VAT treatments. Under the Brief, only the part of a supply that falls within its descriptions gets the 5% rate, every other element is taxed at its own normal VAT liability.
Examples in practice:
- A family ticket bundling two adult and two children's admissions to a cinema: the children's element can be reduced-rated if sold as children's tickets; the adult element stays at 20%.
- A zoo entry (reduced-rated admission) sold with a gift-shop voucher or a meal deal: the admission can be 5%, but the merchandise or food bundled with it follows its own normal rate.
- A children's meal that includes a soft drink as part of the package: the soft drink qualifies; but if the order includes an alcoholic drink, that meal is excluded entirely.
You apply the correct rate at the tax point (broadly, the earlier of when you supply the service or receive payment, or the invoice date if applicable) and reflect it on your VAT return. If a deposit was taken before 25 June for a visit during the window, check the tax point carefully, the rate is fixed by the tax point, not the visit date. For the mechanics of getting this onto your return, see our guide on how to complete a UK VAT return.
Worked example: a soft play centre charging £10 admission
Soft play centres are explicitly named as qualifying for the 5% rate on admission for customers of any age. Take a centre charging £10 net per admission.
- Normal rate (20%): VAT = £2.00, so the gross price is £12.00.
- During the window (5%): VAT = £0.50, so the gross price is £10.50 if you pass the saving on.
The VAT rate drops by 15 percentage points (from 20% to 5%), which on a £10 net admission cuts the VAT charged from £2.00 to £0.50, a £1.50 saving on the gross price. You then have a commercial decision on what gross price to set:
- Pass the saving on: drop the gross to £10.50. Customers feel the "summer savings" benefit and you keep your £10 net margin. Good for footfall and aligns with the campaign messaging.
- Keep the gross at £12.00: your net rises to £11.43 (£12.00 ÷ 1.05) and your margin improves by £1.43 per admission, but the customer sees no price change.
There is no requirement to pass the cut on, it's your call. Just make sure your till/booking system charges the correct VAT either way, because the figure that hits your VAT return is the 5% output tax, regardless of the gross you set.
The same logic applies to a £6 children's meal eaten in: VAT falls from £1.20 (20%) to £0.30 (5%) during the window.
Do children's meals always qualify?
No. The meal must be "held out for sale only as a meal for children", supplied as catering by a restaurant, cafe or similar establishment, and eaten on the premises. A smaller portion of an adult dish does not qualify, takeaway does not qualify, and any meal including alcohol is excluded. Soft drinks that form part of the children's-meal package do qualify.
If you run a venue that pools tips or runs a tronc alongside food service, the VAT rate change doesn't affect how tronc and service charges are treated, see restaurant accounting: tronc, tips and VAT. For the wider rules on catering, on-premises vs takeaway, and what's already standard- or zero-rated, our VAT on food, drink and hospitality guide covers the baseline that this temporary cut sits on top of.
How do I update my till and booking system for the window?
Treat this like any other rate change with a hard start and end date:
- Create dedicated 5% tax codes for qualifying lines (children's meals, qualifying admissions) so they're separated from your 20% and any zero-rated lines.
- Map products correctly: tag only the qualifying SKUs/tickets. Keep adult tickets, alcohol, merchandise and takeaway on their normal codes.
- Update online booking systems and menus to show the right gross prices from 25 June, and decide upfront whether you're passing on the saving.
- Schedule the revert: set a reminder to switch back on 2 September 2026. Leaving 5% codes live after the window understates your output VAT and creates an error to correct.
This is the same discipline as the 5% reduced rate on domestic energy, if you've handled that, the mechanism will feel familiar. See VAT on electricity and gas bills: 5% vs 20% for how reduced rating works in another context.
What records do I need to keep?
You must be able to evidence which supplies you reduced-rated and why. HMRC can ask you to justify every 5% line. Keep:
- Menus and ticket listings showing how children's meals and children's tickets were "held out for sale" during the window.
- Till/EPOS reports splitting 5%, 20%, zero-rated and exempt sales across 25 June – 1 September.
- Pricing decisions and dates the rate change went live and was reverted.
- For mixed supplies, your apportionment method showing how you split the 5% and 20% elements.
If you're on a special scheme (flat rate, cash accounting or retail), check how the temporary rate interacts with it before the window starts, apportionment and the rate you apply can differ. A quick review now avoids a messy correction in your next return.
Who should act on this?
Any VAT-registered business making qualifying family supplies: soft play centres, zoos, aquariums, museums, amusement parks, fairs, circuses, adventure parks, observation attractions, cinemas, theatres, concert venues, and restaurants or cafes with genuine children's menus. If you run a hospitality or leisure venue and want the rate change set up and reverted correctly, with the gross-price decision modelled for your margins, our team supports hotels and restaurants with exactly this.
What happens on 2 September 2026?
The reduced rate ends. From 2 September 2026, all the supplies above revert to their normal VAT liability, children's meals and qualifying admissions go back to 20% (or their usual rate). The cut is strictly temporary; there is no extension in the Brief. Diarise the revert, switch your tax codes back, and update your menus and booking prices the same day.
Not sure whether a particular ticket bundle or kids' menu qualifies? Book a free call with Zmartly and we'll map your supplies to the correct rate before 25 June.
Frequently asked questions
When does the temporary 5% VAT rate start and end?
It applies from 25 June 2026 to 1 September 2026 inclusive. Qualifying supplies revert to their normal VAT rate from 2 September 2026. It is a temporary measure under Revenue and Customs Brief 5 (2026) with no extension announced.
Does soft play admission qualify for the 5% rate?
Yes. Admission charges to soft play centres qualify at 5% for customers of any age during the window. On a £10 net admission, the VAT falls from £2.00 (20%) to £0.50 (5%), making the gross £10.50 if you pass the saving on. Pay-per-ride elements and bundled food or merchandise stay at their normal rate.
Do adult and family tickets get the 5% VAT cut?
Standalone adult tickets to cinemas, theatres, shows and concerts stay at 20%. Children's tickets marketed and sold as such qualify at 5%, and family packages qualify on the children's (qualifying) element only, the adult portion is taxed at its normal rate under the mixed-supply rule.
Do takeaway children's meals qualify at 5%?
No. Only children's meals held out for sale only as a meal for children and supplied as catering for consumption on the premises qualify. Takeaway food, smaller portions of an adult meal, and any meal including alcohol stay at the normal rate.
