Since July 2020, there has been a reduced rate of VAT (5%, and not the normal 20%) charged on transactions in the leisure and hospitality sectors (which includes theatres and live events – a list of who it applies to can be seen here).
Plans earlier this year to return to the full rate were successfully challenged and a six month extension was obtained in the 2021 budget (along with a package of other measures) with the not-unreasonable argument that the sector was still substantially handcuffed by the coronavirus restrictions and a reluctance among customers to return.
The 5% rate ended on September 30th – up to 12.5% before returning to the full 20% next March.