VAT Rate Cut for Summer 2026 - What's included?

2 months ago by Oliver Atkinson

Starting from the 25th of June and running until the 1st of September 2026, the government has introduced what it calls Great British Summer Savings. This is, in effect, a temporary VAT rate cut for a variety of different attractions primarily aimed at getting families out and about and increasing general footfall over the summer months. There’s a quite a few businesses included, so let’s take a look at the details:

VAT Rate Cut

A temporary VAT rate of 5%, down from the standard 20% will apply to the following attractions and products:

• Children’s menu items consumed on premises in restaurants.
• Child and Family tickets for cinemas, concerts, theatres, exhibitions and other shows.
• Admission tickets to a wide range of other attractions, including but not limited to: Theme Parks, fairs, soft play centres, zoos, wildlife or adventure parks and circuses.

The government expectation is that the businesses able to offer the VAT-rate cut on these items will pass the savings on to their customers, in effect lowering the prices for the period rather than keeping the difference.

Unfortunately, sporting events were not included in the package, so summer days out at the cricket or tennis will still attract the full rate of VAT for families.

What do I need to know?

If your business offers one of the included products or services there a few things to consider before the 25th of June. First of all, be sure to update your price lists for the period! This might mean printing out new menus, or making adjustments to your online pricing to reflect the cut depending on how you advertise your prices.

If you make a mixed supply, the normal VAT rules apply – only the part of the supply that falls into one of the eligible categories should be made at the reduced VAT rate, so be careful when applying any adjustments to your point-of-sale software or till to ensure you aren’t caught out. Keep a clear record of any adjustments you make, as these will need to be undone come the 2nd of September when the VAT-rate returns to normal.

Likewise, ensure that any advance bookings for dates that fall within the VAT-cut period are taken into account- you might need to refund the VAT-rate difference on eligible items to your customers who’ve booked in advance.

It’s also worth ensuring that your staff are aware of the new rules to avoid any confusion by either your customer facing-teams or any finance staff in the back.

Full technical details and a complete list of eligible business can be found on the government’s technical factsheet.

Free Bus Travel for children throughout August

As part of the package, the government has also teamed up with a wide range of bus service providers to offer free bus travel for children aged 5-15 years old throughout August. This means that children can make unlimited bus journeys throughout this time at no cost, and there is no registration or any kind of sign-up required. Many of the large bus companies have signed up to the scheme, including Brighton & Hove Buses. please feel free to contact us using the details on our website.