VAT Relief At UK Airports To Be Reviewed

Some retailers inside airport terminals have been accused of pocketing as much as 50p out of every £1 in VAT, with little difference between the prices seen in air-side branches and on the high street.

The review will also include other airport shopping taxes, including excise duty - however, this particular form of relief is already closely regulated by HM Revenue and Customs.

A UK counsellor Mr Osborne said: "VAT relief at airports is intended to cut prices for 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."

VAT relief is designed for airport passengers who are flying to destinations outside the European Union.

An investigation by The Independent in the summer revealed many airside retailers were asking shoppers for their boarding cards, even though the customers were not legally obliged to show them at the check-out, and failing to pass on the savings.