Bacta advises operators to review temporary summer VAT reduction measures

Bacta has advised members to review newly announced Government guidance following the introduction of a temporary reduction in VAT to 5 percent on certain children’s meals, admissions and family attractions over the summer period.

The trade association said the relief is specifically targeted at qualifying children’s admissions and hospitality-related purchases, rather than wider gaming, amusement or machine-based activity.

As a result, Bacta is encouraging operators — particularly those running mixed-use venues combining family attractions, food and beverage operations and gaming facilities — to examine the guidance carefully and seek independent VAT advice where appropriate.

The temporary measure is expected to provide some support for parts of the wider leisure and hospitality sector during the summer months, although the extent to which amusement operators can benefit will depend on the precise structure and activities of individual venues.

Bacta confirmed it will continue reviewing the detail of the announcement over the coming days while also maintaining dialogue with HM Treasury regarding broader taxation concerns affecting the sector.

In particular, the association said it will continue pressing the case for wider VAT reform and further reductions in Machine Games Duty (MGD) ahead of the Autumn Budget.

The Government guidance relating to the temporary reduced VAT rate is available through HMRC here

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28 May 2026

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