The summer VAT cut explained

Great British Summer Savings: a plain English guide for hospitality, leisure and attractions

For ten weeks this summer, VAT drops from 20% to 5% on some family days out. It is not a blanket cut for hospitality. It is targeted, the rules are fiddly, and you have two rate changes to manage in quick succession. Here is what qualifies, what does not, and what to sort before it starts.

The Basics

The government has announced a temporary VAT cut called Great British Summer Savings. From 25 June to 1 September 2026, VAT falls from 20% to 5% on a defined list of family activities. From 2 September, the standard 20% rate comes back automatically. It applies across England, Wales, Scotland and Northern Ireland. The detail sits in HMRC’s Revenue and Customs Brief 5 (2026).

The aim is to help families with the cost of a day out and to put more feet through your door over the school holidays. The government expects the saving to be passed on to customers, not kept by the business.

What Qualifies for 5%

The cut is narrow. It covers:

• Children’s menu meals eaten in a restaurant. The meal has to be from a children’s menu and marketed, presented and priced as a children’s meal.

• Children’s and family tickets to cinemas, theatres, concerts, shows and exhibitions.

• Admission tickets, for adults and children, to attractions such as amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.

What Does Not Qualify

This is where most mistakes will happen. The following stay at 20%:

• Adult meals, and any food that is not a children’s menu meal

• Takeaway food

• Alcohol, including with a child’s meal

• Adult-only cinema, theatre and show tickets

• Season tickets and passes that allow entry outside the 25 June to 1 September window, unless they are priced the same as a standard single-entry ticket

• Sporting Activities

• Anything already exempt or zero-rated, such as admission to not-for-profit museums, zoos and theatres under the cultural exemption

So a pub selling pints and adult meals sees no change. A theme park ticket can be 5% while the burger and beer bought inside stay at 20%. A soft play centre’s child ticket qualifies, but the parent’s coffee does not.

Don't Get Caught Out

There are two rate changes, not one. The switch to 5% on 25 June is the easy part. The switch back to 20% on 2 September is where the risk sits. Miss it and you undercharge VAT, then owe HMRC the difference out of your own pocket.

Mixed venues need the most care. If you sell qualifying and non-qualifying items side by side, your till needs to split them correctly, your receipts need to show the right rate, and your VAT return needs to reconcile to what you actually charged.

What To Do Before 25th June

1.   Check what you sell actually qualifies. Work from HMRC’s brief, not from what a supplier or trade forum says.

2.   Update and test your till and booking systems with the new 5% codes. Run a few test transactions before the live date.

3.   Review menus and ticket descriptions so a children’s meal or children’s ticket is clearly defined.

4.   Brief your staff so they know which items are which.

5.   Diary the switch back on 2 September now, while you are thinking about it.

How We Can Help

Whether a particular item qualifies is a judgement call, and the penalty for getting it wrong lands on you. If you run a restaurant, attraction, cinema or leisure business, we can confirm which of your sales qualify, help set up your till and booking systems, and make sure your VAT return matches what you charged at the door. We take a joined up view, so we will flag anything else worth tidying while we are in there.

If you're an existing customer, get in touch with your account manager. If you're not a customer and would like support, please fill out the contact form and a team member will be in touch.