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Digest (periodic roundup)
Summer 2026 hospitality and leisure roundup: VAT relief, World Cup licensing, and Martyn's Law
Two time-limited regulatory changes affect hospitality and leisure businesses this summer: a temporary 5% VAT rate on children's meals and family attraction admissions (25 June–1 September 2026, UK-wide) and extended licensing hours for on-licensed premises in England and Wales during the 2026 FIFA World Cup knockout rounds (from 29 June through 19 July 2026). A forward-look at Martyn's Law is included for venues preparing for future obligations.
Change event:
VAT reduced rate (5%) for children's meals and family attractions June–September 2026
Effective 25 June 2026
Related guidance
Topics
VAT Rates & Exemptions
Alcohol Licensing
Food & Hospitality
Farm Events Licensing
Overview
Two time-limited regulatory changes arrive for the hospitality and leisure sector in summer 2026, each with a distinct audience. They overlap in timing but apply to fundamentally different businesses — and different parts of the UK.
First, a temporary 5% VAT rate applies from 25 June 2026 on specified supplies: children's meals for consumption on the premises, and a defined range of child, family, and general admissions to attractions including zoos, museums, amusement parks, and soft-play centres. This is a UK-wide measure under SI 2026/576 that affects food businesses serving children and visitor attraction operators. The standard 20% rate resumes automatically on 2 September 2026 — no action is needed to revert, but getting the interim rate wrong carries no penalty protection.
Second, SI 2026/520 provides temporary extended licensing hours for premises in England and Wales with on-sales authorisations, covering FIFA World Cup knockout nights from 29 June through to the Final on 19 July 2026. No licence variation is required; the relaxation applies automatically to qualifying premises. This order does not apply to Scotland or Northern Ireland.
Looking further ahead, Martyn's Law (the Terrorism (Protection of Premises) Act 2025) has commenced its preparatory provisions from 15 June 2026. The substantive duties are not yet in force and are not expected before spring 2027, but venues should begin preparatory work now.
Change 1: 5% VAT on children's meals and family admissions (UK-wide)
Who this applies to: Food businesses serving children's meals for consumption on the premises, and operators of visitor attractions with child, family, or general admission — including circuses, fairs, amusement parks, adventure parks, soft-play centres, zoos, observation attractions, farm visitor attractions, nature reserves, museums, theatres, cinemas, and similar cultural facilities. This is UK-wide: it applies in England, Scotland, Wales, and Northern Ireland.
Who this does NOT apply to: Businesses providing accommodation, adult-only meals, sports events, or sports facilities. The reduced rate is limited to the qualifying supplies defined in the instrument — applying 5% to supplies outside Group 17 or Group 18 would itself constitute a VAT error.
The Value Added Tax (Reduced Rate) (Hospitality and Tourism) Order 2026 (SI 2026/576) modifies Schedule 7A to the VAT Act 1994 by inserting Group 17 (children's meals on the premises) and Group 18 (qualifying attraction admissions). The rate applies to supplies made between 25 June 2026 and 1 September 2026 inclusive. On 2 September 2026 the standard 20% rate resumes automatically — you do not need to take any action to revert, but you must revert on that date. HMRC published Revenue and Customs Brief 5/2026 alongside the instrument. There is no penalty carve-out for applying the wrong rate: both over- and under-charging standard rate during the reduced-rate window will result in VAT errors that must be corrected.
Practical steps: Review your menu and ticket products to identify which supplies fall within Group 17 or Group 18. Update tills, point-of-sale systems, and accounting software to apply 5% from 25 June. Ensure your VAT return for the period captures reduced-rate and standard-rate supplies separately. Plan for the 2 September reversion: schedule a system update and communicate it to relevant staff.
Change 2: Extended licensing hours for the FIFA World Cup (England and Wales only)
Who this applies to: Premises licence holders and club premises certificate holders in England and Wales whose licence authorises the sale of alcohol for consumption on the premises (on-sales). The relaxation is automatic — you do not need to apply for a variation or notify your local licensing authority.
Who this does NOT apply to: Premises in Scotland or Northern Ireland (separate licensing frameworks apply). Premises whose licence covers off-sales only, late-night refreshment only, or regulated entertainment only. The Order applies solely to on-sales authorisations.
The Licensing Act 2003 (FIFA World Cup Licensing Hours) Order 2026 (SI 2026/520) came into force on 8 June 2026. It provides extended closing times of 1 a.m. or 2 a.m. (depending on the specific date) during the World Cup knockout rounds. The covered period runs from the night of 29 June 2026 (Round of 32) through to the night of 19 July 2026 (the Final). Quarter-final nights are 9–11 July, semi-finals are 14–15 July, and the third-place play-off is 18 July. Local licensing authorities remain responsible for compliance and enforcement throughout.
Practical steps: Confirm your premises licence or club premises certificate includes an on-sales authorisation. Brief staff on the extended hours for each relevant night. Ensure your Challenge 25 and responsible service procedures cover the additional trading period. Review your noise and dispersal arrangements with your local licensing authority if you have not already done so — although no variation is required, proactive communication with your authority reduces enforcement risk.
Combined action checklist
Actions for hospitality, leisure, and licensed-premises businesses this summer:
- By 25 June 2026 (VAT — UK-wide): Update tills and accounting systems to apply 5% VAT to children's meals served on the premises and to qualifying attraction admissions. Confirm which of your supplies fall within Group 17 (children's meals) or Group 18 (attraction admissions) of the amended Schedule 7A.
- By 25 June 2026 (VAT — UK-wide): Do not apply the reduced rate to accommodation, adult-only meals, sports events, or sports facilities — the reduced rate is limited to specified supplies only.
- By 29 June 2026 (licensing — England and Wales on-sales only): Brief front-of-house and bar staff on extended closing times for each World Cup knockout night. Update rotas to cover the additional trading period.
- Ongoing through 19 July 2026 (licensing): Maintain responsible service of alcohol and Challenge 25 procedures throughout the extended hours. Keep your designated premises supervisor informed of each extended-hours night.
- By 2 September 2026 (VAT — UK-wide): Revert tills and accounting systems to the standard 20% VAT rate. The reversion is automatic in law but your systems must reflect it from the first supply on 2 September.
- Ongoing (Martyn's Law forward-look): Venues with 200 or more attendees at any event should begin reviewing their protective security and preparedness arrangements now, even though the substantive standard-tier duties are not yet in force. Watch for further guidance as implementation progresses.
Martyn's Law: prepare now, comply later
The Terrorism (Protection of Premises) Act 2025 (commonly known as Martyn's Law) received Royal Assent in 2025. Preparatory provisions commenced on 15 June 2026. However, the substantive standard-tier duties (for premises with 200 or more attendees) and enhanced-tier duties (for premises with 800 or more attendees) are not yet in force and are not expected to apply before spring 2027 at the earliest.
Venues in the hospitality and leisure sector — including pubs, restaurants, hotels, theatres, visitor attractions, arenas, and event spaces — should treat the current period as preparation time. Review your protective security and counter-terrorism preparedness arrangements, and watch for further guidance as implementation develops.
See our full editorial on Martyn's Law commencement for detailed guidance at /updates/martyns-law-commencement-2026/.
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