Download the full report (PDF).
New research from the TaxPayers’ Alliance reveals the true cost of taxes on holidays abroad. With hard-working people saving all year round for a well-deserved break, few of us are aware of just how much of our holiday money goes straight into the Treasury’s coffers.
Most simple but important purchases made inside Britain before going on a holiday, such as clothes for adults or hair cuts for all the family, are subject to VAT, while travel insurance purchases are hit by Insurance Premium Tax and budget flights by Air Passenger Duty. As the summer holiday season draws near, new calculations by the TaxPayers’ Alliance reveal just how heavy a burden the taxman places on rest and relaxation. Click here for the full report (PDF).
Matthew Elliott, Chief Executive of the TaxPayers’ Alliance, said:
“The credit crunch and soaring food and fuel costs are making it harder than ever for people to afford a well-deserved summer holiday abroad. Instead of hiking taxes on flying, Gordon Brown and Alistair Darling should give us all a tax break.”
Tax charged on some examples of holiday essentials:
These are only some examples of the holiday purchases used in our calculations – for a complete list please see the full report (PDF).