Policy paper

Revenue and Customs Brief 2 (2021): temporary reduced rate of VAT for hospitality, holiday accommodation and attractions

This brief sets out the changes in the VAT treatment of certain supplies of hospitality, hotel and holiday accommodation, and admission to certain attractions as announced at Budget 2021.

From:
HM Revenue & Customs
Published
3 March 2021

Documents

Guidance on the temporary reduced rate of VAT for hospitality, holiday accommodation and attractions

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Details

This brief explains the changes in the VAT treatment of certain supplies of:

  • hospitality
  • hotel and holiday accommodation
  • admission to certain attractions

The Chancellor announced at Budget 2021 that the temporary reduced rate of 5% will be extended to 30 September 2021.

From 1 October 2021 the reduced rate for these supplies will be replaced by the introduction of a new reduced rate of VAT of 12.5% which will remain in effect until 31 March 2022.

Published 3 March 2021

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