On the 15th July 2020, the Chancellor temporarily reduced VAT for the tourism and hospitality sector from 20% to 5%. Businesses that could take advantage of this rate included:
- hot takeaway food
- non-alcoholic drinks sold in cafes, restaurants, bars, etc
- hotels, pitch fees for caravans or tents, and associated facilities
- certain admissions to theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
From the 1st October 2021, VAT for the tourism and hospitality sector will increase to 12.5%, before returning to the standard rate of 20% from the 1st April 2022.