Now that people are starting to come back home from their well deserved annual breaks, new research shows that holidaymaker in 2012 had to pay some £2 billion in tax for the pleasure. That works out at £56 for each holiday taken abroad.

That, says The Taxpayers' Alliance (TPA), is £500 million more than four years earlier in 2008. This is down to increases in Air Passenger Duty and VAT.

So last year a family of four would have paid about £350 in tax for their flights and purchases of holiday items in the UK such as sun cream, clothes, a haircut and even subbed sessions.

Insurance Premium Tax on travel insurance also added to the overall bill.

The key facts from TPA are [1]:

* In 2012 the estimated total tax bill for holidays abroad was over £2 billion. That is £56 for each of the holidays abroad taken

* A family of six travelling to Spain will have faced an average tax bill of £187 on their flights and holiday purchases in the UK

Sitges Spain by G.M Kowalewska via Wikimedia Commons

Sitges Spain by G.M Kowalewska via Wikimedia Commons

* A family of four travelling to Florida will have faced an average tax bill of £350 on their flights and holiday purchases in the UK, an increase of £150 since 2008

* A couple travelling to Australia will have faced an average tax bill of £254 on their flights and holiday purchases in the UK

Matthew Sinclair, Chief Executive of the TaxPayers' Alliance, said:

"People work hard all year to make ends meet, despite high taxes and rising prices. They look forward to a holiday as a blessed relief but sadly the tax man is waiting even when they try to take a well-earned break. Britain's exceptionally high taxes on flights in particular make holidays much more expensive, as well as making it harder for Britain to compete as a destination for tourists and business investment. The Government should cut Air Passenger Duty and make flying more affordable."

[1] www.taxpayersalliance.com/holidaytaxes.pdf

Comment Here!

comments