For the rest of this summer, UK theme parks and attractions only have to pay 5 percent VAT. Yet some in the industry are calling for a permanent cut.
Like most other goods and services sold in the UK, attractions typically pay 20 percent of their admission price to the government as VAT.
The 5 percent rate, which has been in force since 25 June, applies until 1 September at theme parks, fairs, circuses, zoos, play centres and other attractions across England, Scotland, Wales and Northern Ireland. It is also in force at museums that pay VAT.
At Alton Towers, the world's first coaster themed to hit animated preschool brand Bluey has opened
The seasonal tax cut has been implemented as part of the government’s ‘Great British Summer Savings’ campaign.
It is up to individual businesses to decide whether to pass the full savings on to their visitors, rather than use the cut to increase margins or cover rising costs. Yet many British attractions are using Great British Summer Savings as an opportunity to lower prices. Either in the form of a direct cut to the ticket price, or via special offers.
A positive reception from the industry
It’s worth noting that many other European countries already levy a lower VAT rate on entertainment and hospitality year-round. Therefore, a permanent cut in the UK, long campaigned for by several trade associations, would bring some kind of parity.
“BALPPA has been delighted to be part of the process of setting up the Great British Summer Savings scheme,” Paul Kelly, chief executive of BALPPA, tells blooloop.
“There is no doubt this reduction will help families visit more of the fabulous attractions all over the country. We hope the government will see the success of this scheme and make a permanently lower level of VAT in the UK.”
Kate Nicholls, chair of UKHospitality, adds: “It’s good to see the government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence.
"A 5 percent rate is a good step to help families enjoy a great British break this summer.”
The same reduced rate has been extended to meals served to children, either at attractions or restaurants in general, as well as children’s and family cinema and theatre tickets, for the duration of the campaign.
Parks and savings
The UK’s largest attraction operator, Merlin Entertainments, is applying the VAT cut to both admission tickets and children’s meals.
“We’re excited to welcome more families to our resort theme parks and immersive experiences for a summer packed with fun, play and lasting memories,” says Merlin's CEO Fiona Eastwood.
Participating Merlin sites include Alton Towers, Legoland Windsor, Thorpe Park and Chessington World of Adventures, as well as the company’s many ‘Gateway’ attractions.
Paultons Park and Drayton Manor are just two more of the attractions passing on the full VAT cut directly to their guests. The Eden Project and Warner Bros Studio Tour London – the Making of Harry Potter have even promised to refund the difference for anyone who had already booked tickets before Great British Summer Savings was announced.
Adventure Island was founded in 1918 as the Sunken Garden, a seaside haven in Southend-on-Sea in Essex
At the free-to-enter Adventure Island in Southend, Essex, guests buying a £30 one-day ride wristband this summer will be offered an annual pass, normally costing £50.
Owner Philip Miller says: “We’ve only really been able to take that chance because of [former Chancellor of the Exchequer] Rachel Reeves and her vision. There’s going to be a lot of happy customers this summer.”
He adds: “If the VAT cut was made permanent. it would put rockets on growth and expansion. We would straight away start shopping for a major roller coaster."
