Great British Summer Savings: VAT Cut to 5%

What is the temporary tourism VAT reduction and which businesses qualify?

Key Payroll Deadlines for 2025/26

Summer Savings: VAT Cut to 5%

The Government has reduced VAT to 5% on selected attractions and children’s meals from 25 June to 1 September 2026. Find out which businesses qualify and what the changes mean.

Temporary VAT Reduction

The Government has announced a temporary VAT reduction on tourist attractions and children’s meals out as part of its new ‘Great British Summer Savings’ scheme.

Help for Tourism, Leisure & Hospitality Businesses

Temporary VAT changes can create additional administration for businesses, including pricing updates, till reprogramming and VAT reporting adjustments.

We can help make sure your business applies the correct VAT treatment and stays compliant with HMRC.

Call 01603 812131 or email enquire@swintonaccountants.co.uk to speak to our team.

What Is the Great British Summer Savings Scheme?

The tourism VAT reduction, known as ‘Great British Summer Savings’, will run from 25 June to 1 September 2026 and will cut the VAT rate on eligible tourism and leisure activities from 20% to 5%. The initiative aims to boost visitor numbers to tourism, leisure and hospitality businesses.

Which Businesses Qualify for the Tourism VAT Reduction?

The discount will apply to children’s meals in restaurants as well as a range of tourist activities including:

  • Theme parks
  • Soft play centres
  • Cinemas
  • Theatres
  • Zoos
  • Adventure parks

However, some organisations, including certain not-for-profit museums, zoos and cultural attractions that are already VAT exempt, will not qualify for the temporary VAT reduction.

Potential Challenges for Businesses

While increasing footfall to tourism, leisure and hospitality businesses, this temporary VAT reduction may also prove to be a headache for those businesses that need to reprogramme tills and reprint menus and promotional material.

In addition, businesses affected by the 5% VAT rate may need to update pricing systems, software, invoices and accounting processes to make sure the correct VAT rate is applied between 25 June and 1 September 2026.

They should also review whether all services qualify, as some activities already exempt from VAT are not included in the scheme. Additionally, not all repeat-entry and season tickets will qualify for the VAT cut for attractions.

HMRC has also published guidance explaining which businesses and activities qualify for the temporary VAT reduction. You can read the HMRC VAT guidance here.

Need help Managing the VAT Changes?

Temporary VAT changes can create additional administration for businesses, including pricing updates, till reprogramming and VAT reporting adjustments.

We can help make sure your business applies the correct VAT treatment and stays compliant with HMRC.

Call 01603 812131 or email enquire@swintonaccountants.co.uk to speak to our team.