Alistair Hardaker
Government announces temporary 5% VAT rate for admission charges from 25 June to 1 September, replacing standard 20% rate for eligible venues.
The government has announced a temporary reduction in VAT for admission charges to museums and cultural attractions as part of a scheme covering children’s meals and family attractions during the summer holidays.
The reduced rate of 5% will apply from 25 June 2026 to 1 September 2026, replacing the standard rate of 20% for supplies within scope. The Chancellor announced the measure in a ministerial statement on 21 May 2026.
Museums and cultural facilities are among attractions eligible for the reduced rate, which applies to admission charges for all customers regardless of age. Other qualifying venues include heritage sites, nature reserves, botanical gardens, planetariums, zoos,, wildlife parks, farm visitor attractions, and observation attractions.
The reduced rate applies only to admission charges. Goods or services supplied separately, such as food, merchandise or upgrades, remain subject to their normal VAT treatment.
The relief does not apply to venues where admission is already exempt from VAT, for example because it is supplied by a qualifying charity or other eligible body. Venues should continue to apply existing VAT exemption rules where applicable.
According to the government guidance, the reduced rate is intended to reduce the cost of selected activities and services for families with children during the summer holiday period.
The scheme also covers children’s meals supplied as part of catering services by restaurants and cafés for consumption on premises, and children’s admission tickets to exhibitions. Where tickets are sold as family packages including at least one child admission, the entire package qualifies for the reduced rate.
Tickets purchased during the period for admission on or after 2 September 2026 remain subject to the standard rate. Where supplies are paid for in advance, businesses may apply the lower rate of VAT in keeping with existing change of rate provisions, including for prepayments made before the announcement.
Guidance says where businesses have already accounted for VAT at the standard rate and subsequently choose to apply the lower rate, they should make the necessary adjustments in their VAT accounts. The government states that where a customer has prepaid, they would be expected to receive a refund for any additional VAT paid.
The changes are subject to the relevant statutory instrument being made and coming into force.
