This means that passengers will be able to buy
duty-free alcohol and tobacco products, where
available, in British ports, airports, and
international train stations, and aboard ships, trains
and planes.
This follows a
consultation with industry on our approach to
taxing goods carried across borders for personal use
from January 2021, as the end of the transition period
brings with it powers to set our own rules in this
area.
The amount that passengers can bring back with them
from non-EU Countries will also be significantly
increased, and extended to EU countries, providing one
of the most generous allowances anywhere in the world.
This means that passengers coming to Britain will be
able to bring back, for example, three crates of beer,
two case of still wine and one case of sparkling wine
to GB without paying UK duties.
Tax-free sales
We are also ending tax-free sales in airports of goods
such as electronics and clothing for passengers
travelling to non-EU countries, following concerns that
the tax-concession is not always passed on to consumers
in the airport. In some instances these tax-free goods
are brought back into the country by UK residents,
putting high street retailers at a disadvantage.
VAT Retail Export Scheme
As part of these changes, VAT refunds for overseas
visitors in British shops will be removed. Overseas
visitors will still be able to buy items VAT-free in
store and have them sent direct to their overseas
addresses, while the costly system of claiming VAT
refunds on items they take home in their luggage will
be ended.
The post-transition passengers VAT and excise
consultation was launched at Spring Budget 2020 and
closed in May.
UK excise duty will no longer be due on alcohol and
tobacco bought when leaving GB. For example, alcohol
purchased duty-free on the way to the EU could be up
to:
- £2.23 cheaper for a 75cl bottle of wine.
- £2.86 cheaper for a 75cl bottle of Champagne or
Prosecco.
- £2.28 cheaper for six 50cl cans of 4% ABV beer.
- £11.50 cheaper for a 1l bottle of 40% ABV spirits.
New GB inbound personal allowances specified below. For
example, someone will be able to bring three crates of
beer, two cases of still wine and one case of sparkling
wine to GB without paying UK duties.
Alcohol
- 42 litres of beer
- 18 litres of still wine
- 4 litres of spirits OR 9 litres of sparkling wine,
fortified wine or any alcoholic beverage less than 22%
ABV
Tobacco
- 200 cigarettes OR
- 100 cigarillos OR
- 50 cigars OR
- 250g tobacco OR
- 200 sticks of tobacco for heating
- or any proportional combination of the above
Any other goods
- £390 or £270 if travelling by private plane or boat
The beer allowance of 42 litres will equate to three
crates of 568ml (pint) cans, the maximum unit per can
that beer is sold in. If passengers prefer to buy 330ml
bottles of beer this would equate to five crates.
Duty free, personal allowance and the VAT Retail Export
Scheme changes will apply in England, Wales and
Scotland.
