The Isle of Man Treasury has announced a temporary VAT cut from 20% to 5% on selected family-related spending, covering children's meals in restaurants, family tickets to cinemas, theatres and shows, and admission to attractions. The reduced rate takes effect on 25 June 2026 and will apply until 1 September 2026. The Treasury also extended the Island's temporary fuel duty reduction until 31 December 2026. Separately, red diesel duty for farmers and fishermen will fall by more than a third from 15 June 2026, dropping from GBP 0.1018 to GBP 0.0648 per litre until the end of 2026. The VAT cut mirrors a UK Government measure, while the fuel duty extension avoids an increase of GBP 0.05 per litre that would otherwise have applied from September under the Customs and Excise Agreement 1979. The Treasury said the VAT change is also expected to support visitor and hospitality businesses through higher summer footfall.
The Treasury (Isle of Man)2026-05-26
Isle of Man Treasury cuts VAT to 5% on selected family activities and extends fuel duty relief to 31 December 2026
The Isle of Man Treasury will temporarily cut value added tax from 20% to 5% on selected family-related spending, including children’s restaurant meals, family tickets for cinemas, theatres and shows, and admission to attractions, and will extend the Island’s temporary fuel duty reduction until 31 December 2026. Red diesel duty for farmers and fishermen will also fall by more than a third from 15 June 2026 until year-end, mirroring a UK Government VAT cut and avoiding a fuel duty increase that would otherwise have applied under the Customs and Excise Agreement.