HMRC has published Revenue & Customs Brief 5/26 confirming a temporary reduced VAT rate of 5% for certain children’s meals, children’s admission tickets and qualifying family attractions. Subject to the relevant legislation being enacted, the reduced rate will apply from 25 June 2026 to 1 September 2026 inclusive. The measure reduces VAT from the standard rate of 20% and is intended to lower the cost of selected leisure activities and dining experiences during the summer holiday period.
Who will be affected?
The changes are relevant to businesses supplying qualifying goods and services to families during the summer holiday period, including restaurants, cafés, cinemas, theatres, museums, theme parks, zoos and indoor play centres. The categories of qualifying supplies are summarised in Table 1.
Children’s meals and admission tickets
The reduced rate applies to children’s meals supplied as part of on-premises catering services where the meal is marketed and presented as a children’s meal. HMRC states that eligibility depends on how the meal is held out for sale rather than who consumes it. A dedicated children’s menu will generally indicate that the supply qualifies. The treatment of common meal types is summarised in Table 2.
Where a children’s meal includes a non-alcoholic drink as part of a fixed-price package, the entire package qualifies for the reduced rate. Separately charged add-ons and upgrades remain subject to their normal VAT liability.
Takeaway meals are excluded from the reduced rate.
The reduced rate applies to children’s tickets for cinemas, theatres, concerts, shows and exhibitions. Eligibility depends on whether the admission is marketed and sold as a children’s ticket. Family tickets receive particularly favourable treatment. Where a single admission package includes at least one child, the reduced rate applies to the entire family ticket, including the adult admissions contained within the package. The treatment of common ticket types is summarised in Table 3.
Qualifying attractions
For qualifying attractions, the reduced rate applies to all admissions regardless of the visitor’s age. The relief covers a broad range of family-focused attractions including theme parks, museums, zoos, aquariums, soft play centres and observation attractions. The categories of qualifying attractions are listed in Table 4. The reduced rate applies only to admission charges. Food, merchandise, upgrades and other ancillary supplies remain subject to their normal VAT treatment. However, it is to be noted that the temporary relief does not apply to sporting activities. Admissions to sporting events, participation in sport and charges for the use of sports facilities continue to follow existing VAT rules.
Time of supply considerations
The reduced rate applies only where the admission date falls between 25 June 2026 and 1 September 2026 inclusive. Tickets purchased during the relief period for admissions after 1 September 2026 do not qualify. HMRC has also confirmed that businesses may apply the lower rate to qualifying prepayments under the normal VAT change of rate provisions. Where VAT has already been accounted for at 20%, adjustments may be made in accordance with existing VAT rules.
Affected businesses should review their VAT coding and accounting systems, ticketing and POS software, menu and pricing structures (which could be a pain for a small time period, specially if you do printed menus), family ticket packages, customer refund processes for advance bookings etc. Given the importance HMRC places on marketing, pricing and presentation, businesses should ensure qualifying supplies are clearly distinguished from standard-rated supplies.
Table 1: Supplies eligible for the temporary 5% VAT rate
| Category | Scope |
|---|---|
| Children’s meals | Qualifying on-premises children’s meals |
| Children’s tickets | Children’s cinema, theatre, concert, show and exhibition tickets |
| Family attractions | Admission to qualifying attractions for all visitors |
Table 2: Children’s meals
| Qualify for 5% VAT | Do not qualify |
|---|---|
| Dedicated children’s menu meals | Smaller portions of adult meals |
| Children’s meal deals | Discounted adult meals |
| Children’s meals including non-alcoholic drinks | Lower-calorie adult options |
| Fixed-price children’s meal packages | Takeaway meals |
| Children’s meals marketed exclusively for children | Shared adult and child meals |
Table 3: Admission tickets
| Ticket type | VAT Treatment |
|---|---|
| Children’s ticket | 5% |
| Family ticket including at least one child | 5% |
| Adult ticket | 20% |
| Non-family group ticket | 20% |
Table 4: Qualifying attractions
| Theme parks and water parks |
| Amusement parks and fairs |
| Adventure parks |
| Circuses |
| Museums and heritage attractions |
| Planetariums |
| Nature reserves and botanical gardens |
| Zoos, aquariums and wildlife parks |
| Farm visitor attractions |
| Soft play centres and indoor play facilities |
| Observation towers and wheels |