Review of airside VAT free shopping

A review has been launched by George Osborne to make sure shoppers share in the reduction in VAT in future. At present, it seems that retailers, particularly the larger retailers, are pocking the cash benefits and not passing them on to customers.

Here’s what a recent announcement on this topic confirmed:

The Chancellor, George Osborne, has launched a review into airport sales to make sure VAT savings are being passed on to shoppers… the Chancellor confirmed that the extensive review will make sure that VAT relief in airports is leading to savings for shoppers, as it is intended to do.

Currently, some airside retailers are keeping up to an estimated 50p of every £1 of potential VAT savings instead of passing those savings on to shoppers.

The Chancellor has tasked HMRC to review airside VAT-free shopping to make sure that shoppers share more of the benefit in future. The review is expected to be completed by early 2016 and will also cover all other airside shopping taxes.

Chancellor of the Exchequer George Osborne said:

For families flying out of the UK for a winter-getaway, airports should be the ideal place to pick-up a bargain.

VAT relief at airports is intended to cut prices for those travellers – not be a windfall gain for shops.

But many people could be paying over the odds for their purchases because the Government’s VAT concession isn’t passed on.

This is simply unacceptable. I have launched a review to make sure that this VAT relief benefits those it’s intended for – consumers – whatever time of the year they are travelling.

This review will consider ways to ensure prices reflect VAT savings as well as savings on duty.

.

Latest Blog
04
Dec

Do not Sack Your Spell Checker

Artificial intelligence (AI) writing tools, such as ChatGPT, Gemini, and Claude, have...

Read More
03
Dec

Autumn Budget 2025 – Personal Tax changes

The chancellor Rachel Reeves announced as part of the Autumn Budget measures that the...

Read More
03
Dec

Autumn Budget 2025 – Minimum Wage increases

The Chancellor of the Exchequer, Rachel Reeves announced increases to the Minimum Wag...

Read More
03
Dec

Autumn Budget 2025 – Pension changes

The Chancellor has kept the main pension allowances unchanged but has confirmed a new...

Read More