In the Budget 2021, the chancellor confirmed that the temporary reduced VAT rate for catering, holiday accommodation and admissions to attractions would be extended until the end of March 2022.

Rishi Sunak announced that the temporary reduced rate of 5% will be extended to the 30th of September 2021. However as of the 1st of October 2021, the reduced rate for these supplies will be replaced by a new reduced rate of VAT of 12.5% until the 31st of March 2022.

Supplies that can benefit from the 5% reduced rate, will continue to benefit from the new 12.5% reduced rate through the extension:

•  Hospitality

Food and non-alcoholic beverages which are sold on- premises in either restaurants, cafes or pubs (excluding alcohol)

• Hotel and Holiday accommodation

Overnight stays in hotels, holiday accommodation, pitch fees for caravan and tents and other sleeping facilities.

• Admission to certain attractions

Theatres, circuses, fairs as well as similar cultural events and facilities