Summer VAT cut on children's meals and family days out - June 2026

Summer VAT cut on children's meals and family days out: what your business needs to know

The government has announced a temporary cut in VAT — from the standard 20% rate down to 5% — on children's meals and admission to a wide range of family attractions. The reduced rate applies for a fixed window of just over two months: 25 June to 1 September 2026 inclusive.

Families will welcome cheaper days out over the summer. But for businesses in hospitality, leisure and entertainment, the change brings a tight timetable and some genuine practical headaches. Here is what you need to know.

What is changing

From 25 June to 1 September 2026, the 5% reduced rate will apply to three categories of supply:

• certain children's meals;
• children's admission to cinema screenings, theatrical performances (including shows and concerts) and exhibitions; and
• all admission tickets to qualifying attractions suitable for families with children.

The change will be introduced through secondary legislation, and HMRC has published Revenue & Customs Brief 5 (2026) setting out how the measure is expected to operate in practice. Two points are worth noting up front: sporting activities are specifically excluded, and supplies that are already exempt from VAT are unaffected.

Children's meals — the detail matters

A children's meal only qualifies for the reduced rate where both of the following apply:

• the meal is held out for sale — that is, marketed, presented and priced — solely as a meal for children; and
• it is supplied as part of catering services by a restaurant, café or similar establishment for consumption on the premises.

This is more restrictive than it first appears. A dish sold as a "smaller portion", a "lower-calorie" option, or a discounted version of an adult meal will not qualify, even if children are the intended customers. The test is whether the meal is genuinely held out only as a children's meal.

There is, however, good news on packages. Where a children's meal is sold for a single inclusive price — for example, a main course bundled with a drink and a dessert — the whole package can benefit from the reduced rate.

Tickets — cinema, theatre and exhibitions

For cinema screenings, theatrical performances and exhibitions, the 5% rate applies where a ticket is sold either as a child's admission only, or as a family ticket that includes at least one child. Importantly, where a family ticket qualifies, the reduced rate covers the entire ticket — including any adult places within the package.

Family attractions — it's about the venue, not the visitor

For qualifying attractions, the reduced rate applies to every admission ticket, regardless of the customer's age. Here it is the nature of the attraction that determines the rate, not who is buying the ticket.

Qualifying attractions include:

• amusement parks and fairs, including water parks and theme parks — but excluding pay-per-ride attractions;
• circuses;
• adventure parks and outdoor adventure centres;
• museums and similar cultural venues, including planetariums, heritage sites, nature reserves and botanical gardens;
• zoos, aquariums, wildlife parks and farm visitor attractions;
• soft play centres, indoor bounce parks and indoor play facilities; and
• observation attractions such as viewing platforms, towers and observation wheels.

The reduced rate covers admission only. It does not extend to merchandise or any other goods and services sold separately.

How we can help

If your business operates in hospitality, leisure or family attractions, we can help you review your menus and ticketing, confirm which supplies qualify, configure your systems for the temporary period, and apportion your VAT returns correctly. We can also talk through the pricing decision and what it means for your margins.

Get in touch with the team to make sure you are ready before the reduced rate takes effect. Tel. 0208 6650757