Temporary VAT Reduction for the Tourism, Hospitality and Leisure Sector

The Government has today announced a new initiative, “The Great British Summer Savings”, introducing a temporary reduced rate of VAT for certain supplies within the tourism, hospitality and leisure sector.

The reduced rate will apply from 25 June 2026 to 1 September 2026 inclusive — why a “random” Thursday in June you may ask, but this coincides with the start of the Scottish school holidays.

Which supplies will benefit from the temporary VAT reduction?

The reduced rate will apply to (providing relevant conditions are met):

1. Children’s meals
2. Children’s admission tickets to theatres, cinemas and other exhibitions or shows
3. Admission tickets to family-friendly attractions, regardless of the customer’s age, including, but not limited to:
   • Zoos
   • Theme parks
   • Soft play centres

What does this mean for businesses in the sector?

This announcement will be welcomed across the sector and provides much-needed support for tourism, hospitality and leisure businesses ahead of the summer period.

However, with any VAT change, businesses are likely to have practical and technical questions around:

• Pricing and point-of-sale systems
• VAT accounting treatment
• Eligibility of supplies
• Promotional offers and ticketing

We’re here to help

We’re here to support businesses across the sector in preparing for and implementing these temporary changes.

If you would like advice on how the reduced VAT rate may affect your business, please do not hesitate to contact either myself or your local Westcotts advisor. We will be pleased to help you navigate the changes and ensure your business is prepared for what promises to be a busier summer period now.