The Chancellor has confirmed that the following supplies will continue to be charged at 5% instead of 20% until 30 September 2021. To help businesses manage the transition back to the standard rate, a 12.5% rate will then apply for a further six months, until 31 March 2022:
- food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs;
- hot takeaway food and hot takeaway non-alcoholic beverages;
- sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities;
- admissions to the following attractions if they are not already eligible for the cultural VAT exemption:
- theatres
- circuses
- fairs
- amusement parks
- concerts
- museums
- zoos
- cinemas
- exhibitions
- similar cultural events and facilities
Where admission to these attractions is covered by the existing cultural exemption, the exemption will take precedence.
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