The Chancellor has announced a temporary VAT reduction aimed at making family leisure activities more affordable this summer. For businesses operating in hospitality, visitor attractions, and the wider leisure sector, this measure brings both a commercial opportunity and an operational requirement to act before the qualifying period begins.
What Has Been Announced?
From 25 June to 1 September 2026, VAT will reduce from 20% to 5% on eligible family-related activities and admissions, including:
- Children’s restaurant meals
- Child and family tickets for cinemas, theatres, concerts, shows and exhibitions
- Admission tickets (adult and child) for attractions including amusement parks, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation decks
The temporary reduction applies across England, Scotland, Wales and Northern Ireland.
What Does This Mean in Practice?
This feels similar to the changes many businesses had to implement during the Eat Out to Help Out scheme after Covid, meaning businesses may need to prepare operationally as well as commercially. The window between announcement and the scheme going live on 25 June is short, and the systems changes required should not be underestimated.
The Government has also indicated an expectation that businesses pass the VAT saving on to customers, and some businesses may choose to refund the VAT difference on advance bookings where the admission date falls within the qualifying period.
Action for Businesses
Hospitality venues, visitor attractions and leisure operators should review whether they will need to update VAT rates on tills, EPOS systems and booking platforms to accommodate the temporary 5% rate during the qualifying period. Key considerations include:
- Identifying which products and admissions fall within the eligible categories
- Updating till and EPOS configurations ahead of 25 June
- Reviewing pricing displayed on booking platforms and websites
- Considering policy for advance bookings that span the qualifying period
- Communicating any pricing changes to customers clearly and in good time
This is definitely one for our hospitality and visitor attraction clients to keep on the radar over the coming months. If you would like to discuss how this measure affects your business, please speak to your usual WDS contact or get in touch with our team.
