The UK will apply a temporary 5% VAT rate to children’s meals and family‑friendly entertainment from 25 June to 1 September 2026. The guidance clarifies eligibility, exclusions such as sports events, and that businesses are not obliged to pass the cut on to consumers.
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The Independent · about 7 hours ago
The UK government will remove VAT from domestic electricity bills from 1 October 2026, cutting the rate from 5% to 0%. The change is expected to save households around £45 a year and will be funded by cancelling the Digital ID programme.
The Independent · about 9 hours ago
In the UK, the government announced an £850 million tax cut on energy bills, making electricity bills VAT free from 1 October 2026 in England, Scotland and Wales. Northern Ireland remains exempt because EU VAT rates apply under the Windsor Framework, preventing the cut from applying there.
BBC · about 14 hours ago
UK VAT will be cut from household electricity bills from 1 October, reducing the rate from 5% to zero and saving households about £45 a year. The cut is funded by savings from scrapping the digital ID programme and will apply to England, Scotland and Wales, with equivalent funding for Northern Ireland.
The Independent · about 14 hours ago
UK households will see 5% VAT removed from electricity bills from 1 October 2026, a move announced by Prime Minister Andy Burnham. The change is expected to save about £45 on a typical annual bill, though a projected 3.1% rise in the price cap may offset the benefit.
Yahoo News Canada · about 18 hours ago
The United Kingdom will see VAT on household electricity removed from 5% to 0% on 1 October, saving typical homes around £45 a year.
Law360 · about 18 hours ago
UK court rules that Staffing Co cannot recover input VAT because its director knew or should have known its supply chain was compromised by fraud. The decision underscores the importance of due diligence in supply chain management for VAT recovery.
Key Takeaways
The rate applies to children’s meals, admission to cinema, theatre, exhibitions, and family attractions for UK businesses.
It starts on 25 June 2026 and ends on 1 September 2026, inclusive.
No, businesses are not legally required to reduce prices; they may keep standard pricing.
Ten‑pin bowling, crazy golf, laser quest, go‑karting, and climbing walls are excluded; an indoor bounce park qualifies.
Primary source
Read the full article at ICAEWThis summary was published on VATfaqs.com on 16 June 2026. It relates to VAT developments in United Kingdom. The original source is ICAEW.
