The ‘Great British Summer Savings’ Scheme

What is the ‘Great British Summer Savings’ Scheme?

The ‘Great British Summer Savings’ scheme will see VAT reduced on a range of family activities, from children’s meals to tickets for attractions such as zoos, cinemas and theme parks. The scheme will run from 25th June to 1st September covering school summer holidays for the whole of the UK. Alongside free bus travel in August for all children aged 5 to 15 in the UK, the Government hopes that it will relieve some pressure on families struggling with the increased cost of living as well as supporting businesses who rely on summer footfall.

What is included and what’s not included?

From 25th June 2026, VAT will be cut from 20% to 5% on all eligible activities across the UK.

The reduced VAT rate for summer activities will apply to:

• Children’s menu meals served in restaurants – only those that will be eaten on-site.
  Meals must be marked as ‘children’s meals’. Smaller portions from an adult menu are not included.
• Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions. It’s important to note that only tickets marked as ‘family tickets’ are included in the VAT reduction. ‘Group tickets’ are not included.
• Admission tickets, for both children and adults, to a range of attractions, including: theme parks, museums, zoos, soft play centres, nature reserves, wildlife parks and observation attractions.
  Both adult and children’s tickets will benefit from the reduced VAT rate of 5%, so for a family of four visiting a theme park over the summer holiday, there are some great savings to be had!
• Sports activities, even those that could certainly be described as family activities, such as a family swimming session, have been excluded completely from the VAT reduction.
• If you purchase a season ticket for a family attraction during this period, the reduction in VAT will not apply.

I own a small business offering children’s activities – what do I need to do?

The Government expects all businesses offering children’s activities to pass on the savings by lowering prices at the tills, starting on 25 June and ending on 1 September. However, it is not legally mandatory.

If you own a small business, you’ll need to update your prices on 25th June anywhere that tickets or meals can be purchased. And, remember to reverse this on 2nd September once the ‘Great British Summer Savings’ scheme has ended.

Your VAT code will need to be updated to reflect the reduced rate, and don’t forget to change it back to 20% from 2 September.

It’s important to keep accurate records. If HMRC later questions whether a particular item was correctly treated at 5%, having clear documentation is critical. The team at Gooding Accounts are ready for the temporary change and have been looking into the finer detail for affected clients, so rest assured your documentation for HMRC will be precisely as it should be!

If you have already sold tickets or taken bookings for the period 25 June to 1 September, the ‘time of supply’ rules will generally apply, although businesses may be able to apply the reduced rate to eligible prepayments.

Whilst the administrative burden may be heavy, the Government believes that, alongside great summer savings for families, the scheme will also help drive footfall to businesses over the school holiday period.

If you’d like guidance on how the temporary VAT reduction could affect your business, contact your client manager who will be happy to help!