Why is there no duty free at Heathrow?

Heathrow Airport has lost a High Court bid to challenge the scrapping of tax-free shopping for tourists. Two schemes providing VAT-free shopping for some international visitors were withdrawn by the Treasury at the end of the Brexit transition period on New Year's Day this year.



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But under post-Brexit rules drawn up by government, tax free sales at UK airports were withdrawn for all outbound passengers from 1 January 2021 on goods other than liquor & tobacco. That included the all-important fragrances & cosmetics category, as well as fashion, luxury, and consumer technology.

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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.

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Heathrow has argued it needs higher fees to provide a good service, pay its shareholders returns and fund investment such as new security scanners which mean liquids can stay in bags and a modern baggage system for one of its terminals.

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