Temporary reduced rate of VAT for children’s meals and family attractions
Published 8 June 2026
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Who is likely to be affected
This measure will affect businesses supplying qualifying children’s meals to eat on their premises and qualifying tickets for admission to certain attractions or events, and families and other customers purchasing those supplies.
General description of the measure
This measure introduces a temporary UK-wide reduced rate of VAT of 5% from 25 June 2026 to 1 September 2026 on certain supplies in the hospitality and tourism sectors.
The reduced rate applies to qualifying children’s meals for consumption on the premises and to certain rights of admission. For shows, exhibitions, theatres, concerts and cinemas, it applies only to admissions held out for sale only as a child admission or as a family admission which includes one or more children. It also applies to admission tickets for any customer to specified family attractions which includes circuses, fairs, amusement parks, adventure parks, soft-play centres, zoos, observation attractions, farm visitor attractions, nature reserves, museums and similar cultural facilities, subject to the exclusions and conditions in the legislation.
Policy objective
The objective of this measure is to reduce the cost of selected hospitality and leisure activities commonly used by families with children during the school summer holidays by introducing a reduced rate of VAT for specified supplies. The measure is temporary and is intended to reduce the cost of certain meals and days out during the specified period only. Supplies that are already exempt from VAT will remain exempt.
Background to the measure
This measure was announced on 21 May 2026. Published guidance explains the scope of qualifying supplies and how the reduced rate interacts with existing VAT rules, including current exemptions.
Detailed proposal
Operative date
The measure will have effect for qualifying supplies made between 25 June 2026 and 1 September 2026 inclusive.
Current law
Current law on reduced-rate supplies is contained in Schedule 7A to the Value Added Tax Act 1994. Existing VAT exemptions relevant to some admissions and catering supplies are contained in Schedule 9 to that Act.
Under the current rules, supplies of children’s meals in the course of catering and admissions to the events and attractions covered by this measure are generally standard-rated unless a specific exemption applies.
Section 88 of the Value Added Tax Act 1994 permits a supplier, where there is a change in the applicable VAT rate or liability, to elect to apply the rate in force at the time the supply is made.
Proposed revisions
The measure modifies Schedule 7A to the Value Added Tax Act 1994 by secondary legislation to insert new Group 17 and new Group 18, together with corresponding entries in the index in Part 1, so that specified supplies are chargeable at the reduced rate of VAT of 5% for a temporary period.
New Group 17 applies to supplies in the course of catering of food for consumption on the premises where the food forms part of a children’s meal. For these purposes a children’s meal is a meal only held out for sale as a meal for a child, and food includes drink. Note (3A) to Group 1 of Schedule 8 applies in relation to this Group. Supplies that are already exempt by virtue of Item 4 in Group 6 or Item 9 in Group 7 of Schedule 9 remain exempt.
New Group 18 applies to certain rights of admission.
For shows, exhibitions, theatres, concerts and cinemas, the reduced rate applies only where the admission is held out for sale only as a child admission or as a family admission which includes one or more children.
The reduced rate also applies to admissions to circuses, fairs, amusement parks, adventure parks, soft-play centres, zoos, observation attractions, farm visitor attractions, nature reserves, museums and other similar cultural facilities, except where an exclusion or exemption applies.
Group 18 includes provision dealing with admissions valid on one or more dates, including certain multi-attraction admissions, and excludes admissions to sports events, sports facilities, and events or facilities for physical education or recreation. Supplies that are exempt by virtue of Items 1 or 2 in Group 13 of Schedule 9 remain exempt.
The reduced rate applies only for the period beginning on 25 June 2026 and ending on 1 September 2026.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| empty | empty | empty | empty | empty | empty |
The final costing will be subject to scrutiny by the Office for Budget Responsibility and will be set out at a future fiscal event.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
The measure is expected to have a positive impact on individuals and households that purchase qualifying children’s meals and admissions during the period of the temporary reduced rate, to the extent that businesses pass on the VAT reduction in the prices they charge. Individuals will not have to do anything other than familiarise themselves with the changes.
The measure will have a positive impact on family formation, stability or breakdown by potentially reducing the cost of certain meals and admissions (as laid out above).
This measure is expected overall to have no impact on individual experience of dealing with HMRC as the change does not change any tax obligation for them.
Equalities impacts
The measure is more likely to benefit households with children, reflecting the design of the relief and the types of supplies within scope.
Census 2021 data shows that Asian households are estimated to be overrepresented in the population with dependent children (8.9%), as well as Black households (4.8%), compared to their prevalence in the general population (7.5% and 3.3% respectively).
Whilst HMRC does not hold direct data on the protected characteristics of households with children, Child Benefit claimant data has been used to estimate the population affected by this measure. Individuals aged 25-54 are estimated to be overrepresented in this population (92.6%) compared to their prevalence in the UK adult population (49%). Females are also estimated to be overrepresented in this population (86%), including females with a child under the age of one (6.8%) compared to their prevalence in the UK adult population (50% and 1.3% respectively).
Individuals who are married are estimated to be overrepresented in the Child Benefit claimant population (57.6%) compared to their prevalence in the UK adult population (50.6%), as well as those who identify as heterosexual (77.2% compared to 65.8%). Finally, those from the Muslim faith are also estimated to be overrepresented in this population (7.2%) compared to their prevalence in the UK adult population (3.7%).
Where data was available there were no other protected groups overrepresented.
Administrative impact on business including civil society organisations
This measure is expected to have a have a negligible short term impact on those businesses that provide catering and qualifying rights of admission to families and children.
One-off costs could include familiarisation with the new rules and updates to tills, pricing systems and accounting processes businesses and civil society organisations making qualifying supplies will need to identify those supplies and apply the temporary reduced rate for the duration of the measure.
It is not anticipated there will be any ongoing costs beyond the life of this measure.
This measure is expected overall to have no impact on businesses experience of dealing with HMRC as the change is temporary in nature and does not change any tax administration obligation.
Operational impact (£ million) (HMRC or other)
HMRC will not incur any additional costs in implementing this change of policy. There may be a short-term increase in contact from businesses seeking clarification, including through HMRC phonelines, as the measure is introduced. HMRC have published guidance and will support businesses in applying the temporary reduced rate correctly. Operational impacts are expected to be manageable within existing systems and processes.
Other impacts
Other impacts have been considered, and none have been identified.
Monitoring and evaluation
The measure will be monitored through information collected in the normal course of VAT administration, alongside other available data relating to the operation of the temporary reduced rate.
Further advice
If you have any questions about this change, contact Rosanna Brown in the VAT Reliefs Team on Telephone: 03000 563720 or email: rosanna.brown@hmrc.gov.uk.
Declaration
Daniel Tomlinson MP, Exchequer Secretary to the Treasury has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.