Leisure: VAT

Treasury written question – answered on 29th April 2021.

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Photo of Simon Jupp Simon Jupp Conservative, East Devon

To ask the Chancellor of the Exchequer, what plans he has to widen the scope of the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions to include leisure and entertainment attractions such as (a) indoor go-karting venues and (b) ice rinks opening from Step 3 of the Roadmap on the easing of lockdown restrictions.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

The temporary reduced rate of VAT (5 per cent) was introduced on 15 July 2020 to support the cash flow and viability of about 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors.

Hospitality for the purposes of this relief includes the supply of food and non-alcoholic beverages from restaurants, cafes, pubs and similar establishments for consumption on the premises.

It also includes the supply of hot food and non-alcoholic hot beverages to take away. Where a business provides such hospitality, that hospitality will benefit from the reduced rate.

Admission charges that entitle a person to participate in events where the primary focus is a sporting activity will not generally be eligible for the temporary reduced rate. If businesses are in any doubt about whether they are supplying sporting facilities, they should consult VAT Notice 701/45.

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