The Government’s recent temporary VAT changes announced as part of the “Great British Summer” initiative could create valuable opportunities for hospitality, leisure and tourism businesses across Scotland this summer.
From 25 June to 1 September 2026, a temporary reduced VAT rate of 5% will apply to qualifying:
• Children’s menu meals served in restaurants for consumption on the premises
• Children’s and family tickets for cinemas, theatres, concerts, shows, and exhibitions
• Admission tickets for both children and adults to attractions including amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks, and observation attractions
From holiday parks and visitor attractions to cafés, restaurants, and family entertainment venues, many businesses will now be reviewing whether parts of their income may qualify for the reduced VAT rate on certain children’s meals and family-focused leisure activities.
The changes could allow operators to either improve margins or offer more competitive family pricing, helping attract additional visitors over the school holidays and increase on-site spend from visiting families.
With UK staycations continuing to remain popular, the measures are designed to encourage families to spend more on domestic leisure and tourism this summer, something that could provide a welcome boost for many Scottish hospitality businesses following continued cost pressures over recent years.
However, the rules are relatively specific, and businesses should review carefully:
• Which income streams actually qualify
• How admissions, packages, and children’s meals are structured
• Whether EPOS and accounting systems require updating
• The VAT treatment of mixed or bundled supplies
• Timing of bookings, deposits, and advance payments
Our Leisure Team works closely with holiday parks, cafés, restaurants, and tourism businesses across Scotland. We help operators navigate VAT, pricing strategy, forecasting, and wider commercial challenges across the sector.
If your business is wondering how to navigate these temporary tax changes, get in touch with our team to discuss your position and strategy today: Contact Us – EQ Chartered Accountants