Attention all savvy shoppers and travel enthusiasts! Some of you might have been aware that tax-free shopping for international travellers shopping in the United Kingdom has been discontinued.
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A new report, released Monday, says that the removal of tax-free shopping in the U.K.—brought about by Rishi Sunak when he was chancellor and who is now prime minister—is costing the country £10.7 billion ($14 billion) and deterring two million tourists a year from visiting.
VAT-free shopping in the UK is gone for good, it has been announced. It was scrapped after Brexit at the start of 2021 and then brought back. But the UK's Chancellor has now confirmed it will not return. The perk made shopping in the country 20 per cent cheaper for international visitors.
Do you pay tax on your pension? The short answer is yes, income from pensions is taxed like any other kind of income. You have a personal allowance (£12,570 for the 2023/24 tax year) on which you pay no income tax, and then you pay 20% tax on income of between £12,571 to £50,270 before higher rate tax kicks in.
Most travellers can bring other goods into the UK worth up to £390 (e.g. perfume and electrical goods) without paying duty and/or tax in the UK. However, passengers travelling by private plane or boat for pleasure purposes are only entitled to an allowance of £270 worth of goods.
Oh, the joy of scoring incredible deals while exploring the beautiful cities of Great Britain! However, starting from January 1, 2021, a wave of change swept across the nation as the UK government made the regrettable decision to discontinue the VAT refund scheme for tourists. Yes, you heard it right.