Families in the Isle of Man will pay less for days out this summer, as a temporary VAT reduction on selected activities comes into effect from 25 June 2026.
VAT on children's meals in restaurants, family tickets to cinemas, theatres and shows, and admission to attractions will fall from 20% to 5% until 1 September 2026.
The cut mirrors action taken by the UK Government to ease cost-of-living pressures for families. Businesses in the visitor and hospitality sectors are also expected to benefit from increased footfall over the summer.
Further good news will see a temporary reduction in fuel duty, first introduced in March 2022 to support residents and businesses, extended until 31 December 2026. Under the Customs and Excise Agreement 1979, the Isle of Man maintains fuel duty rates in line with the UK — and motorists faced an increase of 5 pence per litre from September prior to this week’s announcement by UK Chancellor Rachel Reeves.
Farmers and fishermen are set to benefit from a significant reduction in fuel costs, with red diesel duty cut by more than a third from 15 June, falling from 10.18p to 6.48p per litre until the end of the year. Fuel is one of the agricultural and fishing sectors’ largest operating costs and the reduction is expected to bring duty rates to their lowest level in more than two decades.
Treasury Minister Chris Thomas MHK said:
‘Cutting VAT on family activities and extending fuel duty support will help residents and visitors in the Island as much as they help across. Any further measures later in the year to deal with the impact of higher energy prices would be applied in the line with the principles laid down by the Chief Minister this March.’
Environment, Food and Agriculture Minister Clare Barber MHK said:
‘Fuel costs are a real and significant pressure for our hard-working farming and fishing businesses. This significant reduction in red diesel duty will provide practical support and greater certainty, helping to protect livelihoods and enabling producers to continue contributing to the Island’s economy.’
Further information is available on the Isle of Man Government and UK Government websites using the following links:
