Home / Europe / Sajid Javid announces return of duty-free for Brits travelling to Europe under no-deal Brexit
Sajid Javid announces return of duty-free for Brits travelling to Europe under no-deal Brexit

Sajid Javid announces return of duty-free for Brits travelling to Europe under no-deal Brexit

The Chancellor said UK excise duty and VAT would be immediately scrapped on alcohol and cigarettes bought by those leaving the UK to head to the EU if a no-deal Brexit goes ahead at the end of next month.

Duty-free sales within the EU were axed two decades ago, with consumers paying full levies on any goods bought while bound for European countries.

But Mr Javid said: “As we prepare to leave the EU, I’m pleased to be able to back British travellers.

“We want people to enjoy their hard-earned holidays and this decision will help holidaymakers’ cash go that little bit further.”

The Treasury said the move would mean that a bottle of wine purchased at Heathrow airport duty free on the way to the EU could be up to £2.23 cheaper than normal.

The plans are estimated to cost the Treasury between £150m and £200m a year, and a new option allowing returning holidaymakers to purchase limited amounts of products at duty-free shops in Europe will also be introduced.

Duty-free shopping is already permitted for those travelling to non-EU countries.

The return of duty-free will only apply immediately if Britain leaves the EU without a deal, as the current withdrawal agreement will see Britain stay in the EU’s single market and customs union during a transition period.