UK and EU strike trade deal; duty free sales set to return from 1 January but tax free set to be scrapped

UK/EU. The UK and European Union today (24 December) struck a trade deal that will define the relationship between the parties from 1 January 2021.

As previously reported, travellers departing England, Scotland and Wales for EU countries will be able to purchase duty free liquor & tobacco from 1 January. In Northern Ireland, which unlike the rest of the UK will operate under EU single market rules, there will be no duty free sales for travellers to the EU (or other UK destinations). Travellers from the EU to the UK can purchase duty free goods, including a much-enhanced liquor allowance (see below), as revealed previously.

Despite a vociferous and broad-based campaign to rescind new UK rules from 1 January, tax free shopping will not be available for air passengers leaving the country unless the government has a last-minute change of heart.

The UK left the EU on 31 January 2020, with a year-long transition period which has culminated in the bilateral trade deal.

The Treasury has previously explained that passengers will be able to buy duty free alcohol and tobacco products, where available, in UK ports, airports and international train stations, and aboard ships, trains and planes.

Under new allowances, travellers coming to Britain can take in 42 litres of beer, 18 litres of still wine and four litres of spirits OR nine litres of sparkling wine, fortified wine or any alcoholic beverage less than 22% ABV, without paying UK duties.

Tobacco allowances will be:

  • 200 cigarettes OR
  • 100 cigarillos OR
  • 50 cigars OR
  • 250g tobacco OR
  • 200 sticks of tobacco for heating
  • or any proportional combination of the above

Industry campaigners said they will be monitoring the full text of the treaty as it is made public. We will bring you any further relevant details over coming days.

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