This summer millions of British families will head off for a well-earned holiday. But before they do many of the simple but important purchases they make are subject to tax. Items such as clothes are subject to VAT, whilst travel insurance purchases are hit by Insurance Premium Tax (IPT). The relative cost of ticket taxes in the UK is the highest in the developed world.
New calculations by the TaxPayers’ Alliance show that taxes make up a significant proportion of the cost of holidays.