Reduced Rate VAT: HMRC’s Temporary 5% VAT for Children’s Meals and Family Attractions

HMRC has introduced a temporary reduced rate VAT of 5% on selected family-focused supplies from 25 June 2026 to 1 September 2026. The measure applies to qualifying children’s meals, children’s cinema and theatre tickets, and admission to eligible family attractions.

This reduction in VAT rate forms part of the Government’s Great British Summer Savings campaign, which aims to make family activities more affordable during the school holidays. HMRC announced the measure in Revenue and Customs Brief 5 (2026) following a Ministerial Statement on 21 May 2026.

Although the relief lasts for just over two months, affected businesses should not underestimate the work involved. Restaurants, cafes, visitor attractions, cinemas, theatres and other qualifying venues may need to update pricing, booking systems, EPOS software and VAT codes. They should also ensure staff understand which supplies qualify before applying the temporary rate.

What Is the Temporary Reduced Rate VAT?

HMRC has introduced a temporary reduced rate VAT of 5% from 25 June 2026 to 1 September 2026. It applies to qualifying children’s meals, children’s admission tickets, and admission to eligible family attractions. Businesses must return to the standard 20% VAT rate from 2 September 2026.

What Qualifies for the 5% Rate

Three categories fall under the reduced rate:

• Children’s meals that were served on-site and advertised and priced exclusively as such. Smaller portions of adult dishes, lower-calorie options, and discounted adult meals don’t qualify. A non-alcoholic drink included in a children’s meal package benefits from the reduced rate alongside it.

• Children’s tickets for cinema, theatre, and similar performances are sold specifically as child admission. Family ticket bundles qualify in full if they include at least one child’s ticket, even where adults are also covered by the same package.

• Family attractions, including theme parks, zoos, museums, soft play centres and heritage sites. The reduced rate covers the admission charge only. Food, merchandise, and paid upgrades sold separately keep their normal VAT treatment.

Sport and physical recreation are excluded entirely and stay standard-rated, along with attractions that already carry an existing VAT exemption.

(Sources: VAT Notice 709/1, VAT Notice 701/14, VAT Notice 701/45)

Key Dates for Businesses

The rate applies based on the date of supply, not the date of booking. A ticket bought in July for a visit after 1 September 2026 stays standard-rated at 20%. Businesses that took prepayments before the announcement can still apply 5% where the visit date falls within the relief window and should refund any VAT already overcharged to the customer.

The standard 20% rate returns automatically from 2 September 2026. Businesses need systems switched back by that date. Forgetting to revert is one of the most common and costly errors following any temporary VAT change, since it can leave a business undercharging VAT for weeks without realising.

What Businesses Should Do Now

The temporary reduced rate VAT requires more than a simple price change. Businesses should review their systems before making qualifying sales to reduce the risk of reporting errors.

You should:

• Check exactly which meals, tickets, or admissions qualify under HMRC’s guidance.
• Update EPOS systems, online booking platforms, and accounting software with the correct VAT codes.
• Test transactions before the temporary rate goes live.
• Review menu descriptions and ticket wording, as eligibility depends on how qualifying supplies are marketed.
• Brief customer-facing staff so they can answer questions consistently.
• Schedule reminders to restore the standard VAT rate from 2 September 2026.
• Keep records of any pricing or system changes to support future VAT compliance.

Businesses using cloud accounting software should also check that the temporary VAT code appears correctly on their VAT return and Making Tax Digital records.

Why Accuracy Matters Here

Applying the temporary VAT rate incorrectly can lead to underpaid VAT, unnecessary corrections, and additional administration.

HMRC’s latest Measuring Tax Gaps 2025 Edition estimates the VAT gap at 6.6% for the 2024/25 tax year, contributing to an overall UK tax gap of £59.2 billion. Temporary tax measures often receive additional scrutiny because businesses can easily apply the wrong rate or fail to switch back when the relief ends.

Good record keeping can reduce this risk. Businesses should retain evidence of system updates, pricing decisions, qualifying supplies, and any VAT adjustments made during the relief period. These records can help demonstrate reasonable care if HMRC reviews your VAT return.

Common VAT Mistakes to Avoid

Temporary VAT changes often create avoidable errors. Businesses should review their processes carefully before applying the reduced rate.

Common mistakes include:

• Charging 5% VAT on adult meals that do not qualify.
• Applying the reduced rate to gift shop sales or merchandise.
• Including food and drinks sold separately at attractions within the relief.
• Forgetting to restore the standard 20% VAT rate from 2 September 2026.
• Using incorrect VAT codes within accounting software.
• Failing to keep evidence supporting qualifying transactions.

Correcting VAT mistakes can take time and may require adjustments on future VAT returns. Reviewing your processes early is usually simpler than correcting errors after submission.