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IAIS, Mansfield Park, 211 Dumbarton Road, Glasgow (2026)

Offices based in Glasgow and the Scottish Borders at Dumfries covering Cumbria and The Lake District.

11/06/2026

NEWS Wednesday, 10th June 2026

CBI warns against tax hikes

British businesses are urging the Government - and Labour leadership contenders - to avoid imposing higher taxes on corporations as job losses escalate. The Confederation for British Industry (CBI) warns that increasing the tax burden will hinder economic recovery, especially amid rising costs and uncertainty from potential leadership changes within Labour. The CBI predicts that an additional 200,000 people will become unemployed this year, while revising UK growth forecasts to just 1.1% for 2026. Chief economist Louise Hellem said: "You cannot build growth by continually increasing the tax burden on business."
The Daily Telegraph

TAX

IHT late penalties rise by a third in five years

The number of families fined for late inheritance tax returns has risen sharply, increasing by 35% over five years. HMRC penalised 5,200 estates in 2024/25, collecting £3.1m, up from 3,850 estates and £1.8m in 2020/21. Overall, nearly £13m has been raised from 24,000 families during this period. Wealth managers warn that more families could face penalties from next April, when pensions become subject to inheritance tax, raising the risk of further non-compliance and financial strain for many households under pressure.
The Sunday Telegraph

Santander chief criticises UK's bank taxes

Ana Botín, Santander's executive chair, says the UK's tax system for banks hinders growth and unfairly target lenders, which already face high corporate levies. She highlighted that banks already face a corporate tax rate of around 30% and should not be singled out for additional taxes. Ms Botín said: "Taxing banks more heavily than other companies makes no economic sense," emphasising the importance of bank lending for investment and job creation.
Financial Times City AM

HMRC explains how new rules will reduce risk of data mismatches

HMRC has issued a statement to explain why the tax office is asking banks to tell it how much households have in savings. HMRC's director of strategy, Jonathan Athow, explains how new rules will reduce risk of data mismatches. Currently, HMRC receives over 100m records annually from around 300 financial institutions. The changes will include additional identifiers, such as National Insurance numbers, to improve data matching.
The Daily Telegraph

Labour urged to tax landlords' income

The New Economics Foundation (NEF) has called for landlords to pay National Insurance Contributions (NICs) on rental income, which is currently exempt. The NEF argues this change could generate £3.2bn, addressing tax distortions favouring property investment. George Bangham, head of social policy at NEF, said: "Income from renting out a property should be treated the same as income from work." However, critics warn this could lead to higher rents for tenants amid the cost-of-living crisis.
The Daily Telegraph

Tax freedom day arrives later

Tax Freedom Day in the UK arrived on June 6, marking the latest date since records began. This year, taxpayers worked 156 days solely for the Government. The Adam Smith Institute predicts that by 2030, Tax Freedom Day will not arrive until June 12.
Daily Express
AI profits will drive calls for wealth taxes
Luca Paolini, the chief strategist at Pictet Asset Management, has warned that wealth taxes are becoming more likely as profits from AI-focused investments rise.
The Daily Telegraph

ACCOUNTING

FRC opens AI sandbox in push to modernise UK audit

The Financial Reporting Council (FRC) has invited audit firms and listed companies to work with the regulator on adopting new technology, simplifying corporate reporting and cutting unnecessary burdens. Three new initiatives - a new Audit Tech & AI Sandbox, a research programme to understand barriers to technology adoption in audit, and a second round of the FRC’s Simplifying Annual Reporting Sandbox - are designed to accelerate change in areas where new technology presents opportunities and where businesses are currently experiencing challenges,, the FRC said. Commenting on the project, Richard Moriarty, CEO of the FRC, said: "Technology, including artificial intelligence, could have a profound effect on the future shape of audit markets around the world. I’m keen for the UK to be at the leading edge of this, supported by a regulatory environment that has a competitive advantage in enabling innovation whilst maintaining high standards and quality that command public confidence."
Financial Reporting Council Scottish Financial News

ACCA backs FRC adoption of global standard

The Association of Chartered Certified Accountants has welcomed the Financial Reporting Council's potential adoption of an international standard on auditing (ISA) for less complex entities. The body said aligning with the International Auditing and Assurance Standards Board’s standards would allow audits to better reflect the circumstances of smaller and less complex businesses, benefitting these businesses.
The Accountant Online

New office proposed to streamline carbon reporting

The Energy Systems Catapult advocates for a new Carbon Reporting and Innovation Office within the Financial Reporting Council to enhance carbon accounting. The current fragmented system burdens businesses with excessive costs and time spent on compliance, its report asserts.
Environmental Data Interactive Exchange Energy Live News
SMEs

FSB warns of squeeze on small firms

The Federation of Small Businesses (FSB) has warned that the conflict in the Middle East is pushing up inflation and squeezing small businesses, with diesel and petrol prices rising 30% and 20% respectively since the war began. Tina McKenzie, the Policy Chair for the FSB, said: "These hikes are hard for any business to cope with, especially after hefty cost increases across the board for small firms that hit in April across energy, employment and business rates." FSB analysis shows that 64% of small firms cite taxation as their biggest cost pressure.
Daily Mail

ECONOMY

UK faces debt crisis by 2030

The International Monetary Fund (IMF) may need to step in and provide emergency aid to Britain as the chances of the country falling into a debt crisis grows, according to leading economists. Former IMF chief economist Ken Rogoff suggests repeated shocks now mean there’s a 50:50 chance of a crisis by 2030 while former OBR official Sir Charlie Bean agrees there’s a "material risk" that the IMF will need to intervene. The warnings come as Britain’s overall debt pile is on course to hit £3tn this September, as the overall debt share heads towards 100% of GDP. A Treasury spokesman described the assessments as "completely untrue".
The Sunday Telegraph

UK services sector declines

The UK services sector experienced its first decline since April 2025, according to the S&P Global UK services PMI survey, which recorded a reading of 49.3 in May, down from 52.7 in April. The downturn was driven by reduced new work and concerns over the ongoing conflict in the Middle East, impacting customer spending. Job cuts also increased, reflecting rising operational costs and economic uncertainty.
Reuters The Independent UK

Retail footfall bounces back in May

Footfall in UK retail improved in May, according to the British Retail Consortium (BRC). The BRC reported a 2.6% decline in footfall compared to last year, but this was a significant recovery from a 10.7% drop in April.
Bloomberg Daily Mail The Guardian

03/06/2026

NEWS Wednesday, 3rd June 2026

Family firms hit hard by tax hikes

Family-owned businesses in the UK are struggling to hire due to rising employment costs, according to a Family Business UK (FBUK) report. Some 40% of family firms cite high wage expectations as the main barrier to recruitment. Neil Davy, chief executive of FBUK, called for a fairer tax system to alleviate pressures from national insurance contributions and minimum wage increases, which are hindering job creation. "Family firms remain eager to grow employment, but cost and uncertainty are forcing them to make unpalatable choices," Davy said, adding: "If we are to reverse this situation and allow businesses to create the opportunities workers need there must be a renewed focus on reducing the burden of national insurance contributions along with careful management of the national minimum and living wages."
Daily Express Daily Mail

TAX

ICAEW calls for longer pilot for corporate tax filing changes

The UK should extend the pilot phase for a new corporation tax return system, say tax professionals. A longer period would allow HMRC to assess initial submissions and enable software providers to make necessary adjustments, the Institute of Chartered Accountants in England and Wales said in a recent press release. HMRC aims to shift from a "free-format structure" to a standardised, tagged format for corporation tax computations, as outlined in a consultation document from March.
Bloomberg Tax

Scottish accountants demand urgent tax reform

Scottish accountants are calling for urgent reform of income tax and national insurance, according to a recent poll by the Institute of Chartered Accountants of Scotland (ICAS). The survey revealed that 39% of members identified these taxes as the most pressing issues, far surpassing concerns over business rates. Katie Close, director of tax at ICAS, commented: "The strength of feeling around income tax and national insurance reflects the growing impact of fiscal drag."
Herald Scotland

Interest tax plan draws criticism

Experts say a new 22% tax on interest from uninvested cash in stocks and shares ISAs, effective April 2027, could erode public confidence in ISAs and deter cautious investors. This change aligns the tax rate with savings interest tax and is part of a broader strategy to reduce the cash ISA limit to £12,000. Antonia Medlicott, founder of Investing Insiders, said: "Taxing uninvested cash feels like a punishment aimed at diligent savers."

Daily Express Daily Star

Thresholds freeze pulls 7m into tax net

The freezing of tax thresholds until 2031 has resulted in 7m additional people entering the income tax net. The number of income taxpayers rose to 40m in the 2025/26 tax year, an increase of 1.3m from the previous year. Sarah Coles, head of personal finance at AJ Bell, says it is "worth considering ways to keep income tax to a minimum," including making pension contributions, getting tax relief at the highest marginal rate, or using a Cash ISA to protect savings interest from tax.
Daily Mirror

Retailers call for action on import tax loophole

Major retailers including Marks & Spencer, Primark, Next and Argos have urged ministers to close the £135 "de minimis" import tax loophole used by overseas rivals such as Shein and Temu. In a letter to Sir Keir Starmer and Rachel Reeves, they proposed a £2.60 levy on low-value parcels, claiming it could raise £1.7bn a year for the Treasury.
Financial Times The Times The I City AM Daily Mail The Standard

Pension pot rethink could mean 'double tax'

Changes to tax rules due in April 2027 would see pension pots of people who are over 75 when they die subject to both inheritance tax and income tax, leading to what critics call a "double tax" of up to around 67%.
Daily Express

ACCOUNTING

ACCA calls for consultation before UK adopts simplified audit standard

The ACCA has urged the Financial Reporting Council (FRC) to adopt the International Standard on Auditing for Less Complex Entities (ISA for LCE). The accountancy body argues that adopting the global standard would allow auditors to focus on the key circumstances of less complex entities, enhancing audit quality for smaller and less complicated businesses.
Scottish Financial News

ACCA poll reveals concern over AI impact

An Association of Chartered Certified Accountants survey of more than 11,000 finance professionals in 160 countries saw more than half of respondents say they are concerned over AI's impact on their roles. Additionally, around 66% desire their work to contribute positively to society and address climate change.
Bloomberg Tax
SMEs

FSB calls for business rates rethink

The Federation of Small Businesses (FSB) has urged the Government to reconsider business rates for small firms, as over 100,000 companies now face this tax for the first time. The FSB has requested an increase in the threshold for business rates from £15,000 to £25,000, arguing that this change would benefit businesses outside London. The FSB also pointed to issues with new calculations for shared office spaces, which have led to unexpected tax bills for many small enterprises. The Treasury said it has allocated £4.3bn to support businesses facing these increases.
The Times

Banks push for small business loan boost

The UK's most prominent banks are urging Chancellor Rachel Reeves to enhance the Government's Growth Guarantee Scheme (GGS) to increase capital for SMEs. UK Finance, representing major banks like Barclays, Lloyds and NatWest, has requested a five-fold increase in the maximum loan limit to £2m, backed by a 70% Government guarantee. Chief executive Davis Postings notes that demand for loans exceeds current allocations, with potential for over £10bn in additional SME turnover.
City AM

ECONOMY

Bailey: Britain at risk of 'vicious circle' on debt

Britain is at risk of a "vicious circle" of rising borrowing costs if it fails to control debt, Andrew Bailey has warned. Higher costs on the Government’s near-£3tn debt could derail the Chancellor’s fiscal plans, weaken confidence, and push borrowing costs higher, the governor of the Bank of England said. Rates have climbed globally since the Iran war began, but Britain’s have risen more than any G7 nation, increasing pressure on public finances. Debt interest was already forecast to exceed £100bn annually. Bailey also said the Bank could continue to offload bonds for one to two years, despite calculations showing gilt sales are having a bigger effect on raising government borrowing costs than previously estimated. Meanwhile, Megan Greene, an external member of the Bank of England’s Monetary Policy Committee, warned that interest rates may need to rise as the conflict wears on.
The Daily Telegraph The Times

Credit card spending drops

Analysis from FICO reveals a significant decline in UK credit card spending, with the average down 6.6% month-on-month to £740. On an annual basis, average monthly spending was up just 0.3% on a year ago. Payment rates also fell, with the percentage of overall balances paid down 1% month-on-month and 3.7% year-on-year. Delinquency rates are rising, with a 29.5% month-on-month increase in customers missing one payment. The average active balance is 4.3% higher than a year ago at £1,925.
City AM

27/05/2026

NEWS Wednesday, 27th May 2026

London accounts for 36% of corporation tax receipts

Office for National Statistics data shows that London accounts for more than a third of the UK's total corporation tax receipts, with the tax take from firms in the capital totalling £33.4bn in the 2024/2025 financial year. This is 36% of the £93.1bn total for the country as a whole. The data shows that the proportion has increased, with London accounting for 33% of corporation tax five years ago. London also generates about a quarter of total income tax receipts, contributing nearly £250bn to government revenue, but took less VAT than the South East of England. Analysis also shows that expenditure in London is lower than its tax receipts, meaning the capital had a fiscal surplus.
City AM Daily Express

TAX

Entrepreneur exodus warning over wealth taxes

Ruth Sunderland in the Mail says a wealth tax proposed by Labour leadership hopeful Wes Streeting could significantly impact private investors and small business owners. The plan aims to equalise capital gains tax with income tax, potentially doubling rates for top earners in a move Mr Streeting claims could raise £12bn. Critics argue that the plan may harm the UK's business environment and suggest scrapping stamp duty on share trading instead. Ms Sunderland says the proposal "is at odds with the ambition of successive chancellors... to boost UK capital markets" and warns that it could "damage the UK's reputation as a good place to set up a business and drive entrepreneurs out of the country."
Daily Mail

Reform vows to scrap overtime tax

Reform UK has announced a plan to eliminate income tax on overtime for those earning under £75,000. The £5bn annual tax cut would target workers who exceed a 40-hour week. Funding would come from a £40bn cuts programme. Shadow Chancellor Sir Mel Stride has questioned whether the policy is viable. Julian Jessop, a senior fellow at the Institute of Economic Affairs, warned: "If overtime is taxed at a lower rate, firms might just reduce pre-tax pay," and Helen Miller from the Institute of Fiscal Studies said the plan could also create an incentive to have more work classified as "overtime" in order to reduce tax payments.
BBC News The Sunday Telegraph Sunday Express Sunday Mirror

Labour urged to rule out pension tax raid

The Government has been urged to commit to protecting pensions from tax raids, with AJ Bell emphasising the need for reassurance for workers regarding their retirement savings. With it suggested that Andy Burnham and Wes Streeting may look to challenge Keir Starmer's position as Labour leader, there are concerns that a new Prime Minister - and potentially a new Chancellor - may target pension contributions and tax-free withdrawals. Rachel Vahey, head of public policy at AJ Bell, has called for the Government to commit to a Pension Tax Lock "to bring certainty and clarity to the debate around the future of pensions."
Daily Mail

Tax burden on households skyrockets

The tax burden on UK households has increased significantly, with HMRC collecting £87.3bn in taxes in April, £6.3bn more than last year. Workers contributed £52.5bn in income tax and National Insurance, as frozen thresholds pushed more into higher tax brackets. Sarah Coles from AJ Bell stated: "These figures are set to climb even further."
Daily Mail

Property taxes in Britain hit record high

Britain's property tax burden has reached a record high, now at 3.7% of GDP, according to analysis. The upcoming "mansion tax" will impose additional costs on homes valued over £2m, potentially affecting ordinary properties in London. Experts warn that the threshold may remain unchanged over time, or even be reduced, leading to more homes falling into the tax net.
The Daily Telegraph

HMRC issues late-filing fine warning

HMRC has warned UK households to act quickly to avoid daily penalties for late self-assessment tax returns. Those who missed the January 31 deadline for 2024/25 tax returns face penalties of £10 per day, with the overall penalty capped at £900. After six months, those who have failed to file their return face a further penalty of 5% of the tax due or £300, whichever is greater. An automatic £100 penalty was triggered for missing the initial deadline.
Sunday Express

ACCOUNTING

Accountants still in high demand amid AI disruption

According to the Institute of Chartered Accountants in England and Wales (ICAEW), demand for accountants in the UK remains robust despite the rise of AI. The ICAEW's research indicates that while AI automates routine tasks, 74% of surveyed mid-tier firms plan to hire more staff with expertise in data analytics and technology. Alan Vallance, chief executive of ICAEW, said: "Demand for accountants remains high, but the nature of early-career accounting roles is expected to change." Additionally, firms are shifting hiring preferences, favouring school leavers over university graduates due to new employment laws and funding cuts.
City AM

FRC publishes review on structured digital reporting

The Financial Reporting Council (FRC) has published its latest review of structured digital reporting by UK listed companies. The report, Structured Digital Reporting: Insights 2025/26, identifies areas where relatively simple improvements would significantly enhance the quality, consistency and usability of digital financial reporting. The regulator said: "Structured digital reporting (SDR) is now well embedded across the UK market, with most companies producing compliant and well-structured filings. However, the FRC’s review identifies recurring issues that continue to limit the usefulness of structured data for investors, regulators and other users."

Financial Reporting Council

FRC concludes annual review of FRS 101

The Financial Reporting Council (FRC) has issued 'Amendments to FRS 101 Reduced Disclosure Framework – 2025/26 cycle', bringing to a close the latest annual review of FRS 101 'Reduced Disclosure Framework' While the core standard remains unaltered, the FRC has introduced limited drafting amendments to clarify requirements, align terminology with recent updates to FRS 102 and FRS 105, and make the framework easier for preparers to navigate.
Financial Reporting Council Scottish Financial News

SMEs

Small firms flag growth concerns

Scottish small businesses are experiencing significant challenges due to rising energy and fuel prices, according to a survey by Novuna Business Finance. The research reveals that 83% of firms identify external factors as barriers to growth, with 50% citing macro-economic uncertainty. Around 40% of businesses are concerned about the effects of overseas conflict on prices, surpassing the UK average of 32%.
The Scotsman

Bank lending to UK business at lowest for nearly 30 years

Bank lending to British businesses has dropped to a 30-year low, dipping to 59% of UK GDP in Q3 2025. The analysis says SMEs have been disproportionately affected.
Financial Times

ECONOMY

UK business activity fell for first time in more than a year in May

UK business activity fell for the first time in over a year in May, according to the S&P Global Flash UK PMI composite output index. The survey, which provides a measure of activity in the private manufacturing and services sector, fell to a 13-month low of 48.5 in May from 52.6 in April. The chief business economist at S&P Global Market Intelligence, Chris Williamson, said: "The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East. Businesses are reporting falling output, surging inflation, supply shortages and job cuts." Paul Dales, economist at Capital Economics, said the figures were the third dataset in three days that suggested "the Bank of England does not need to rush to raise interest rates."
Financial Times Reuters The Daily Telegraph

UK borrowing soars to £24.3bn

UK public sector borrowing reached £24.3bn in April, exceeding forecasts by £3.4bn. The Office for National Statistics (ONS) reported that debt interest repayments hit a record £10.3bn for April while predicting total borrowing could exceed the Office for Budget Responsibility's (OBR) estimate of £115.5bn for the year. ONS chief economist Grant Fitzner said increased spending on benefits contributed to the rise in borrowing. Lucy Rigby, Chief Secretary to the Treasury, commented: "We are cutting borrowing and debt... while driving growth through £120bn of additional capital investment over the Parliament."
Financial Times The Daily Telegraph The Guardian

22/05/2026

Purpose of this brief

This brief explains a temporary reduced rate of VAT of 5% that will apply to:

certain supplies of children’s meals

children’s admission to theatres, cinemas, concerts, exhibitions and shows

all admission tickets to certain attractions suitable for families with children

The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).

The reduced rate replaces the standard rate of VAT of 20% for supplies within scope during this period. These changes are subject to the relevant statutory instrument being made and coming into force, and this brief reflects the law as it is expected to apply once enacted.

Who this applies to

This brief is relevant to businesses making consumer‑facing supplies to families with children during the school summer holidays. This includes, but is not limited to, the following types of organisations and their advisers:

restaurants, cafés and similar catering establishments
cinemas, theatres, exhibition and performance venues
operators of circuses, fairs, amusement parks, theme parks, adventure parks and water parks, zoos and other animal attractions, soft play centres, observation attractions and certain other family-focused attractions

museums and similar cultural attractions

Background

In a Ministerial Statement made by the Chancellor on 21 May 2026, the government announced the introduction of a temporary reduced rate of VAT (5%) for supplies of children’s meals and tickets to certain attractions, intended to reduce the cost of selected activities and services for families with children during the summer holiday period. The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).

The reduced rate for children’s meals and children’s tickets for cinemas, theatres, exhibitions and shows covers those supplies that are marketed, priced and presented as intended for children. These do not generally apply to supplies aimed at adult customers, except where those supplies form part of a qualifying family package as described in this brief. The reduced rate will apply to tickets for all customers for attractions set out within this brief.

This cut in VAT rate from the standard rate of 20% will be introduced by statutory instrument and have effect on admissions from 25 June 2026 to 1 September 2026.

What supplies are covered

The reduced rate applies to the following categories of supplies where the conditions described are met:

children’s meals

children’s cinema, theatre, show and concert tickets

admission to certain attractions

Children’s meals

The reduced rate applies to the supply of children’s meals where
both of the following conditions are met:

the meal is held out for sale only as a meal for children

the meal is supplied as part of catering services by a restaurant,
café or similar establishment for consumption on the premises

Whether a meal is held out for sale only as a meal for a child will depend on how it is marketed, presented and priced rather than who consumes it (for example, being included on a distinct children’s menu).

The reduced rate does not apply for:

meals marketed as smaller portions

lower-calorie options

discounted versions of adult meals

shared meals intended for both adults and children

Where the same meal appears on both an adult and children’s menu, the children’s version would normally be differentiated by portion size and or price. Portion size alone is not a determining factor.

Where a children’s meal is supplied for a single inclusive price (for example including a drink or additional courses), the entire package can qualify for the reduced rate. Optional items, add-ons or upgrades priced separately that do not form part of the children’s meal remain subject to their normal VAT liability. Describing an item as ‘free’ does not determine its VAT treatment and normal VAT principles apply.

Meals include drink, meaning that a non-alcoholic drink supplied as part of a children’s meal will qualify for the reduced rate. Meals that include an alcoholic drink will not normally be regarded as a children’s meal.

Meals that are exempt from VAT (for example where supplied alongside exempt education or care) will be unaffected by these changes.

Takeaway meals do not qualify for the reduced rate.

For more information, read:

Food products (VAT Notice 701/14)
Catering and takeaway food (VAT Notice 709/1)
Example

If a restaurant offers a fixed price children’s meal (for example, main, drink and dessert) on a dedicated children’s menu. The whole supply is subject to the reduced rate.

If a children’s menu lists a main meal, with a drink or dessert available for an additional charge. If these items are also on the children’s menu, they may also benefit from the reduced rate. However, if additional items are selected from the standard menu, then the reduced rate does not apply.

If a menu includes a smaller or cheaper portion of an adult meal that is not presented as part of a children’s menu. This is not a children’s meal and remains standard-rated.

Children’s theatre and cinema tickets
The reduced rate applies to children’s admission tickets to:

cinema screenings
theatrical performances, shows and concerts
exhibitions
A children’s ticket is one that is held out for sale only as a right of admission for a child, based on how it is marketed, priced and presented by the supplier.

Where tickets are sold individually for different categories of customer, the reduced rate applies only to tickets that are marketed and sold as children’s tickets.

Where a ticket is held out for sale as a right of admission for a family which includes one or more children, the reduced rate applies to the whole ticket, including any adult admissions included within that package.

Standalone group or multi-person tickets that are not held out for sale as family admissions do not qualify. Standalone adult admissions remain standard-rated.

Example

If a cinema sells adult and children’s tickets separately. Only the children’s tickets are subject to the reduced rate. Adult tickets remain standard-rated.

If a theatre sells a family ticket (for example, two adults and two children) for a single price. As the package includes at least one child admission, the whole package is subject to the reduced rate.

If a venue sells only standard admission tickets and does not offer tickets marketed as children’s admissions. All tickets remain standard-rated.

Attractions and soft play
The reduced rate applies to charges made for a right of admission for any customers, regardless of age, to qualifying attractions that are suitable for families with children.

This includes admission to the following venues, unless that admission is already exempt from VAT (for example because it is supplied by a qualifying charity or other eligible body):

amusement parks and fairs, including water parks and theme parks (excluding pay-per-ride attractions)
circuses
adventure parks, including outdoor adventure centres
museums and similar cultural facilities, including planetariums, heritage sites, nature reserves and botanical gardens
zoos, aquariums, wildlife parks and farm visitor attractions
soft play centres, indoor bounce parks and indoor play facilities
observation attractions, including viewing platforms, towers and observation wheels

Only supplies of admission to these types of attractions fall within the scope of the relief.

The reduced rate applies to the charge for the right of admission only. Goods or services supplied separately (for example food, merchandise or upgrades) remain subject to their normal VAT treatment.

Where a single ticket gives admission to more than one attraction and this ticket is solely for admission within the relief period, then the relief may apply. If a ticket permits repeat entries outside the dates 25 June 2026 to 1 September 2026, then this will not qualify for the relief, unless the ticket is the same price as a single day entry. For example, a weekly or season pass allowing multiple visits beyond the relief period will not qualify where it is priced higher than a standard single-entry ticket. Repeat entry tickets solely for use within the relief period will qualify for the relief.

Sporting activities
The reduced rate does not apply to sport, including charges for spectating and for participating in sport or physical recreation. This includes:

admission to sports events
use of sports facilities
participation in recreational sport
Some supplies of sport or physical recreation may instead be exempt under VAT Notice 701/45.

Admission to shows and certain attractions
If you charge a fee for admission to screenings, performances and certain attractions where the supplies are currently standard-rated, you only need to charge the reduced rate of VAT for admissions between 25 June 2026 and 1 September 2026.

If the fee you charge for admission is already exempt, then the reduced rate will not apply. You can find out more about the cultural exemption in VAT Notice 701/47 on admission charges to cultural events.

Marketing, pricing and intention
The categories in this brief reflect those set out in the legislation. Whether a supply falls within those categories depends on how it is held out for sale, including how it is marketed, priced and presented.

Bundles and mixed supplies
Where admission, meals or tickets are supplied together with other goods or services for a single price, businesses should continue to apply normal VAT rules to determine the correct liability.

Only the part of the supply that falls within the descriptions covered by this brief may be eligible for the reduced rate. Other elements should be treated according to their normal VAT liability.

Time of supply
The reduced rate applies to supplies of a right of admission for a date falling between 25 June 2026 and 1 September 2026 (inclusive). Tickets bought 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 opt to apply the lower rate of VAT on the supply in keeping with the existing change of rate provisions. This will apply to all prepayments, including those which may have taken place in advance of the announcement.

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 would expect that where a customer has prepaid that they would be refunded for any additional VAT paid.

Businesses should apply the normal VAT rules on time of supply when determining the correct rate of VAT. For further information on tax points and the specific change of rate provisions, read VAT guide (VAT Notice 700).

More information
Continue to use existing VAT guidance to work out the VAT liability of your supplies.

If you have questions about this change, contact VAT: general enquiries.

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