Taxes add £60+ to cost of holidays

Motoring and Travel

Updated on 24 June 2015 | 2 Comments

Holiday taxes have jumped significantly, according to TaxPayers' Alliance.

UK holidaymakers will each pay around £62 in taxes per holiday in 2015.

That's according to new figures from the TaxPayers’ Alliance, which revealed holiday taxes have increased sharply over the last seven years. Indeed, it claimed that the relative cost of ticket taxes in the UK are now the highest in the developed world.

The TaxPayers' Alliance claimed that a family of four travelling to Florida will land an average tax bill of £398 on their flights and holiday purchases in the UK. That's an increase of a whopping £198 since 2008.

A family of six (two adults and four children, two over twelve and two under twelve) travelling to Span will be hit with £182 in holiday taxes, while a couple travelling to Australia will have an average tax bill of £240 on flights and UK holiday purchases.

Back in 2008, the total tax bill on holidays abroad was around £1.5 billion. Since then it has jumped an astonishing £900 million to £2.4 billion.

Why taxes are going up

The TaxPayers’ Alliance argued that this larger tax bill is partly down to changes in the rates of Air Passenger Duty (APD) and higher VAT.

APD reforms which took effect in May saw Band C and D removed. This has resulted in cheaper long-haul flights, with a slight increase in taxes for those travelling between 2,000 and 4,000 miles. Read Air passenger tax reforms mean cheaper long-haul flights for more.

Jonathan Isaby, chief executive of the TaxPayers' Alliance, said: "It's wrong that a week in the sun comes with such a huge tax bill, as the taxman chases holidaymakers all the way to the departure gate. These taxes are not only too high but hit those on lower incomes the hardest, making it more difficult for hard-working people to get away for a well-deserved break during the summer holidays."

Ease your holiday bill with cheaper travel insurance

More on travel:

Currency conversion costing holidaymakers £127 a year

Best places to buy your holiday money

Alternative holiday destinations that could save you money

The best pre-paid cards for spending abroad

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