Get set for Great British Summer Savings
Families will pay less for children’s meals in restaurants, kids’ tickets to cinemas and theatres and entry to a wide range of attractions this summer.
The government has announced it will reduce the rate of VAT to five per cent on children’s meals, family admissions to visitor attractions and children’s soft play.
The ‘Great British Summer Savings’ scheme has been launched to support families and help ease pressure on household budgets. And as part of the initiative the reduced rate of VAT takes effect from June 25 and will be in place until September 1.
Here’s our guide help hospitality and leisure businesses be clear about where the temporary VAT cut should be applied.
It covers those supplies that are marketed, priced and presented as intended for children.
The reduced rate applies to the supply of children’s meals where both of the following conditions are met:
- The meal is held out for sale only as a meal for children
- the meal is supplied as part of catering services by a restaurant, café or similar establishment for consumption on the premises
Whether a meal is held out for sale only as a meal for a child will depend on how it is marketed, presented and priced rather than who consumes it – for example, being included on a distinct children’s menu.
The reduced rate does NOT apply to:
- meals marketed as smaller portions
- lower-calorie options
- discounted versions of adult meals
- shared meals intended for both adults and children
Where the same meal appears on both an adult and children’s menu, the children’s version would normally be differentiated by portion size and or price. Portion size alone is not a determining factor.
If a children’s menu lists a main meal, with a drink or dessert available for an additional charge and these are also on the children’s menu, they may also benefit from the reduced rate. However, if additional items are selected from the standard menu, then the reduced rate does not apply.
If a menu includes a smaller or cheaper portion of an adult meal that is not presented as part of a children’s menu, this is not a children’s meal and remains standard-rated.
And where a children’s meal is supplied for a single inclusive price – for example including a drink or additional courses – the entire package can qualify for the reduced rate.
Optional items, add-ons or upgrades priced separately that do not form part of the children’s meal remain subject to their normal VAT liability. Describing an item as ‘free’ does not determine its VAT treatment and normal VAT principles apply.
A drink supplied as part of a children’s meal will qualify for the reduced rate. Takeaway meals do not qualify for the reduced rate.
The reduced rate applies to children’s admission tickets for:
- cinema screenings
- theatrical performances, shows and concerts
- exhibitions
A children’s ticket is one that is held out for sale only as a right of admission for a child, based on how it is marketed, priced and presented by the supplier.
Where tickets are sold individually for different categories of customer, the reduced rate applies only to tickets that are marketed and sold as children’s tickets.
And where a ticket is held out for sale as a right of admission for a family which includes one or more children, the reduced rate applies to the whole ticket, including any adult admissions included within that package.
However, standalone group or multi-person tickets that are not held out for sale as family admissions do not qualify.
If a cinema sells adult and children’s tickets separately, only the children’s tickets are subject to the reduced rate. Adult tickets remain standard-rated.
And if a theatre sells a family ticket – for example, two adults and two children – for a single price, as the package includes at least one child admission, the whole package is subject to the reduced rate.
When it comes to attractions such as soft play, the reduced rate applies to charges made for a right of admission for any customers, regardless of age, to qualifying attractions that are suitable for families with children.
This includes admission to the following venues, unless that admission is already exempt from VAT – for example because it is supplied by a qualifying charity or other eligible body:
- Amusement parks and fairs, including water parks and theme parks (excluding pay-per-ride attractions)
- Circuses
- Adventure parks, including outdoor adventure centres
- Museums and similar cultural facilities, 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
- Observation attractions, including viewing platforms, towers and observation wheels
Only supplies of admission to these types of attractions fall within the scope of the relief.
The reduced rate applies to the charge for admission only. Goods or services supplied separately, such as food, merchandise or upgrades, remain subject to their normal VAT treatment.
Where a single ticket gives admission to more than one attraction and this ticket is solely for admission within the relief period, then the reduction may apply.
However, if a ticket permits repeat entries outside the dates 25 June 2026 to 1 September 2026, then it will not qualify, unless the ticket is the same price as a single day entry.
So, a weekly or season pass allowing multiple visits beyond the relief period will not qualify where it is priced higher than a standard single-entry ticket. Repeat entry tickets solely for use within the relief period will qualify for the relief.
The reduced rate does not apply to sport, including charges for spectating and for participating in sport or physical recreation.
Other issues to be aware of:
Where admission, meals or tickets are supplied together with other goods or services for a single price, businesses should continue to apply normal VAT rules to determine the correct liability.
Only the part of the supply that falls within the descriptions covered by this brief may be eligible for the reduced rate. Other elements should be treated according to their normal VAT liability.
Where supplies are paid for in advance, businesses may opt to apply the lower rate of VAT on the supply in keeping with the existing change of rate provisions. This will apply to all prepayments, including those which may have taken place in advance of the announcement.
Where businesses have already accounted for VAT at the standard rate and subsequently choose to apply the lower rate, they should make the necessary adjustments in their VAT accounts. The government would expect that where a customer has prepaid that they would be refunded for any additional VAT paid.
Businesses should apply the normal VAT rules on time of supply when determining the correct rate of VAT.
- To discuss any issues raised by this article or any VAT queries please contact me on 01772 430000
