The tax on holidays

August 05, 2014 12:00 PM

This summer millions of British families will have headed off for a well-earned holiday. But before they did so, many of the simple but important purchases they made were subject to tax. Items such as clothes or haircuts are subject to VAT, while travel insurance purchases are hit by Insurance Premium Tax. Flights are subject to the highest Air Passenger Duty rates in the world – even budget flights to destinations close by in Europe.

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