HMRC Updates Hotel and Holiday Accommodation VAT Notice

Summary 

• HMRC updated VAT Notice 709/3 on 27 October 2026 and removed information used to calculate the temporary reduced VAT value. 

• The temporary hospitality and tourism rates ended on 31 March 2022, so normal VAT rules have applied since 1 April 2022. 

• The notice continues to cover hotels, holiday accommodation, caravans, camping, long stays, deposits and cancellation charges. 

Extended article 

HM Revenue & Customs updated VAT Notice 709/3, which explains the UK VAT treatment of hotels, inns, boarding houses, holiday accommodation, caravans and camping facilities. The update removes material relating to calculation under the temporary reduced-rate regime that ended on 31 March 2022. 

The change is primarily a clean-up of historic guidance rather than a new rate change. From 1 April 2022, the normal VAT rules again apply, including the standard rate for taxable hotel and holiday-accommodation supplies. Businesses should nevertheless use the current notice because it also addresses long-stay guests, bundled accommodation and catering, deposits, cancellations and other charges. 

For long stays, the notice should be read carefully because UK law contains a reduced-value rule after the first four weeks where the statutory conditions are met. The update does not remove the need to distinguish that valuation rule from the expired temporary reduced VAT rates. 

External links 

• HMRC VAT Notice 709/3 

• HMRC guidance on the expired temporary reduced rate 

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