26/05/2026
Temporary Reduced Rate of VAT
In a Ministerial Statement made by the Chancellor on 21 May 2026, the government announced the introduction of a temporary reduced rate of VAT (5%) for certain supplies aimed at helping reduce the cost of activities and services for families with children during the summer holiday period.
The temporary reduced rate will apply to:
• Children’s meals
• Children’s cinema tickets
• Children’s theatre, show and concert tickets
• Admission to certain attractions
The reduced rate will only apply where the qualifying conditions set out by HMRC are met.
The temporary 5% VAT rate will apply from 25 June 2026 to 1 September 2026.
Businesses affected by these changes should review their pricing, tills, invoicing systems and VAT accounting procedures to ensure the correct rate is applied during the qualifying period.
If you require any assistance or would like further information on how these changes may affect your business, please contact the office on 01768 892336.
Photo credit to Honister Slate Mine of their Infinity Bridge activity.