HMRC published Revenue and Customs Brief 5 (2026) on 21 May 2026, introducing a temporary 5% VAT rate for specific family-focused supplies during the school summer holidays. The relief runs from 25 June 2026 to 1 September 2026 inclusive and forms part of the government’s “Great British Summer Savings” initiative.
Who qualifies and what is covered
The reduced rate applies only where supplies are marketed, priced and presented as intended for children or families with children. Key categories include:
- Children’s meals – Meals from a dedicated children’s menu, served on the premises with a non-alcoholic drink. Takeaway children’s meals and smaller/adult portions do not qualify.
- Children’s admission tickets – Tickets to theatres, cinemas, concerts, exhibitions and shows sold specifically as children’s or family tickets.
- All admission tickets to qualifying family attractions – Theme parks, zoos, soft play centres, museums, circuses, adventure parks and similar venues suitable for families with children. Only the admission charge qualifies; food, merchandise and upgrades remain at the normal VAT rate.
Critical exclusions and boundary issues
Businesses must watch the boundaries carefully. Standalone adult tickets, season tickets extending beyond 1 September, pay-per-ride charges, sports admissions, and supplies not clearly presented as children’s or family-oriented stay standard-rated at 20%. The test is how the supply is held out to the customer, not simply the age of the purchaser.
Practical steps for CFOs and finance teams
1. Review menus, ticketing and marketing collateral immediately. Update descriptions, pricing displays and point-of-sale systems so the reduced rate is applied correctly from 25 June. Misclassification risks under-declared or over-declared VAT.
2. Update VAT accounting and reporting. Ensure your ERP or accounting software can handle the temporary rate change and that mixed supplies are correctly apportioned.
3. Consider pricing strategy. The policy intent is that businesses pass the VAT saving to customers. Document any decision to retain margin versus lowering prices – this may be relevant if HMRC later reviews compliance.
4. Prepaid tickets and season passes. Businesses can apply the reduced rate to qualifying prepaid supplies with appropriate adjustments or refunds where 20% VAT was originally charged.
5. Record-keeping and evidence. Maintain clear records showing how supplies were marketed and presented. This will be essential if HMRC queries the application of the relief.
Interaction with existing VAT rules
Normal VAT rules on time of supply, composite supplies and place of supply continue to apply. The brief does not override the requirement to consider whether a supply is a single composite supply or multiple supplies. Review existing VAT Notices 700, 701/45 and 701/47 alongside the new brief.
Next steps and monitoring
The relief is time-limited. Finance teams should diarise a review in early September to revert systems and processes to the standard 20% rate. Watch for any HMRC clarification or further briefs if edge cases emerge during the summer period.
This is a narrow but operationally significant change. CFOs in hospitality, leisure and retail should treat it as a short project with clear ownership rather than a simple rate tweak.
Sources and further reading
- Revenue and Customs Brief 5 (2026) – gov.uk
- Full policy paper details
- Restaurant Online coverage
- The Caterer summary
- Clive Owen & Co analysis
- Wales247 report
- RPC Corporate Tax Update May 2026
- Tax Journal – HMRC manual changes
Contact Mark Hendy at Tanous for a quick review of how this temporary VAT relief applies to your specific operations and whether your current systems and processes are ready for 25 June.