VAT reduced for campsites, holiday parks, restaurants and attractions
The Chancellor has reduced VAT from 20% to just 5% on all campsites and holiday parks, as well as in other areas such as hotels, restaurants and entry to attractions across the UK.
The cut, which is only temporary, could reduce significantly the cost of a stay at campsites or holiday parks in the coming months if the businesses choose to pass on the saving. Since all campsites have been closed for months due to Coronavirus, many sites may understandably need the saving themselves to keep up and running.
The tax cut comes into effect on 15 July and will run until 12 January 2021.
In his statement, the Chancellor said the move has been made to support businesses and jobs, and will apply to supplies of accommodation and admission to attractions throughout the UK.
In addition, he has also cut VAT on food and non-alcoholic drinks bought from restaurants and bars and similar business by the same amount. Again, the move is temporary and will end in January next year.
“From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT will apply to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK,” he said.
Image courtesy of Waldegraves Holiday Park, Essex