13. June 2026

Great British Summer Savings VAT Relief: What Hospitality and Leisure Businesses Need to Know

This summer, the Government is giving the hospitality and leisure sector a helping hand with the introduction of the Summer VAT Hospitality Scheme. Running from 25 June to 1 September 2026, the scheme reduces VAT from 20% to 5% on a range of qualifying family-focused activities and meals.

For hospitality businesses, visitor attractions and entertainment venues, the initiative presents a valuable opportunity to attract more customers during the busy summer holiday period. For families, it could mean more affordable days out, cheaper children's meals and greater value from leisure activities.

The reduced VAT rate applies to eligible children's meals eaten on-site, along with admission to selected attractions such as zoos, museums, theme parks and indoor play centres. Certain family and children's tickets for cinemas, theatres and other entertainment venues may also qualify.

While the prospect of lower VAT is exciting, businesses should avoid assuming that all sales are covered. The rules are specific, and getting the VAT treatment wrong could result in costly corrections later.

Now is the time to review pricing, update till systems and ensure staff understand which supplies qualify. A little preparation can help businesses make the most of the scheme while staying fully compliant with HMRC requirements.