I want to buy some electronic products from the UK without paying VAT. I will have the products delivered directly to my factory in Japan. Will I be able to buy these products as tax-free?

You can only buy tax-free goods from shops in Great Britain (England, Wales and Scotland) if they’re delivered straight to an address outside the UK. Check with the retailer if they offer this service.

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate | % of VAT | What the rate applies to

Standard | 20% | Most goods and services

Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home

Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes

Check the VAT rates on different goods and services. Some things are exempt from VAT, such as postage stamps and some financial and property transactions.

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco

petrol, diesel and other fuel

insurance

goods from abroad if you go over your customs allowance

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Gambling operators (for example, betting shops and websites, casinos or slot machine owners) have to pay gambling duties on profits they make from gambling. Customers do not pay duty on their stake (what they bet or pay to play) or winnings.

Where you see VAT

In shops

Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.

Some shops in Northern Ireland offer tax-free shopping for visitors.

In adverts, catalogues and price lists

This depends on who they’re aimed at. If they’re for:

the general public only, they’ll show you a price including VAT

businesses as well as consumers, they might show the price with VAT and without

businesses only they do not usually include VAT, which is charged on top of the price shown

On bills and receipts

Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

How VAT is worked out

When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.

They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

If you’re eligible, you’ll pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home.

Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it.

Not all products or installations qualify for the reduced rate and you cannot buy or install them yourself.

Eligibility

To qualify for the reduced rate, you must be over 60 or getting one or more of the following:

Child Tax Credit (but not the family element)

Council Tax Benefit

Disability Living Allowance

Personal Independence Payment

a disablement pension

Housing Benefit

Jobseeker’s Allowance (income-based)

Income Support

War Disablement Pension

Working Tax Credit

You will also be eligible to get the reduced rate on the products if the total cost of them (not including VAT) is not over 60% of the cost of the installation of the products (not including VAT).

If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.

Your supplier will be responsible for charging you the correct rate of VAT.

Energy products that qualify

You pay the reduced rate of 5% for:

controls for central heating and hot water systems

draught stripping, for example insulation fixed around windows and doors to reduce draughts

insulation on walls, floors, ceilings and lofts

solar panels

ground-source heat pumps

air-source heat pumps

micro combined heat and power units

wood-fuelled boilers

Central heating systems

You pay the reduced rate of 5% for work funded through energy efficiency grants on the:

installation of heating appliances

installation, repair and maintenance of central heating systems

installation, repair and maintenance of renewable source heating systems

The reduced rate is only for the grant-funded part of the work.

Energy products that do not qualify

You pay the standard rate of VAT for:

heating appliances or systems - unless you get an energy efficiency grant

energy efficient boilers

secondary or double glazing

low emission glass

energy efficient fridge freezers

wind turbines

water turbines

VAT on mobility aids

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.

Qualifying products

You can get the reduced rate on:

grab rails

ramps

stair lifts

bath lifts

built-in shower seats or showers containing built-in shower seats

walk-in baths with sealable doors

You do not get the reduced rate if you repair or replace the goods after they’ve been installed.

You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.

How to get the reduced rate

Your supplier should know about the reduced rate and apply it. You qualify if:

you’re over 60 when the product is supplied or installed

the product is installed - you do not get the reduced rate if you just buy it

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

You’ll need to confirm to your supplier in writing that you meet these conditions. They may give you a form, or you can sign your own declaration. Ask a relative, partner or other responsible person if you’re not able to fill it in yourself.

Declaration: mobility aids for older people

Sign and date the declaration, using this standard wording.

Help from your council

If you need to adapt your home because of old age you can apply to your council for equipment or help.

Tax-free shopping

You may be able to buy tax-free goods from some shops when you visit Northern Ireland. You claim your VAT refund when you leave Northern Ireland or the EU.

When you may be able to get a VAT refund

You can sometimes get VAT refunds on goods you buy in Northern Ireland if you:

visit Northern Ireland and live outside the UK and EU

work or study in Northern Ireland but normally live outside the UK and EU

live in Northern Ireland but are leaving the UK and EU for at least 12 months

You can only get a VAT refund if you take the goods out of Northern Ireland and the EU within 3 months of buying them. Not all retailers offer VAT refunds.

Taking goods from Northern Ireland to Great Britain

You will not get a VAT refund if you travel straight from Northern Ireland to Great Britain.

If you travel from Northern Ireland to Great Britain through another country, the goods will count towards your tax-free personal allowances. You may have to declare them along with other goods you’re carrying when you enter Great Britain and pay import VAT.

This may mean you have to pay VAT again on the goods from Northern Ireland. If this happens, you can get a refund of the overpaid VAT from the retailer.

Check the rules on bringing goods into Great Britain.

How to get a VAT refund

Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport.

Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.

Customs will approve your form if everything is in order. You then take the approved form to get paid.

If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in Northern Ireland when you check in.

Getting paid

You can either get paid immediately at a refund booth, for example at the airport, or send the approved form to the retailer or their refund company. The retailer will tell you how you’ll get paid.

Some retailers charge a fee for handling your form. This money will be deducted from your refund.

If there are no customs officials available, you can leave your form in a customs post box. Customs will check it and contact your retailer to arrange the refund if everything is in order.

Goods you cannot get a refund for

You cannot get a VAT refund for:

mail order goods, including internet sales, delivered outside of Northern Ireland

goods you’ve already used in Northern Ireland or the EU, such as perfume

service charges, such as hotel bills

new or used cars

goods worth more than £600 exported for business purposes

goods to be exported as freight

goods that need an export licence (except antiques)

unmounted gemstones

gold over 125g, 2.75 troy ounces or 10 tolas

a boat you plan to sail to a destination outside Northern Ireland or the EU

Find out more about claiming VAT back on tax-free shopping in Northern Ireland, including travelling to Great Britain and problems like losing your form.

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.

Alcohol duties are included in the price you pay for beer, cider or perry, wine or ‘made-wine’, and spirits. Made-wine is any alcoholic drink made by fermentation that’s not beer, cider, perry, spirits or wine.

You also pay standard rate VAT at 20% on alcohol and tobacco products.

Tobacco Duty

You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.

Tobacco product | Rate

Cigarettes | 16.5% of the retail price plus £4.90 on a packet of 20

Cigars | £3.05 on a 10g cigar

Hand rolling tobacco | £8.14 on a 30g packet

Other smoking tobacco and chewing tobacco (for example pipe tobacco) | £4.03 on a 30g packet

Beer Duty

How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ (ABV).

Strength (ABV) | Beer Duty rate per litre for each % of alcohol

More than 1.2%, up to 2.8% | 8.42 pence

More than 2.8%, up to 7.5% | 19.08 pence

More than 7.5% | 24.77 pence

Cider Duty

You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling.

Type of cider or perry | Strength (ABV) | Rate per litre

Still | More than 1.2% but less than up to 6.9% | 40.38 pence

Still | At least 6.9%, up to 7.5% | 50.71 pence

Still | More than 7.5% but less than 8.5% | 61.04 pence

Sparkling | More than 1.2%, up to 5.5% | 40.38 pence

Sparkling | More than 5.5% but less than 8.5% | 288.10 pence

Wine Duty

How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling.

Type of wine or made-wine | Strength (ABV) | Rate per litre

Still | More than 1.2%, up to 4% | 91.68 pence

Still | More than 4%, up to 5.5% | 126.08 pence

Still | More than 5.5%, up to 15% | 297.57 pence

Still | More than 15%, up to 22% | 396.72 pence

Sparkling | More than 8.5%, up to 15% | 381.15 pence

You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits.

Spirit Duty

You pay £28.74 of Spirit Duty per litre of pure alcohol.

Fuel Duty

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates

The rate you pay depends on the type of fuel.

Type of fuel | Rate

Petrol, diesel, biodiesel and bioethanol | 57.95 pence per litre

Liquefied petroleum gas (LPG) | 31.61 pence per kg

Natural gas used as fuel in vehicles, for example biogas | 24.70 pence per kg

‘Fuel oil’ burned in a furnace or used for heating | 10.70 pence per litre

You pay different rates on other types of fuel, depending on how they’re used.

You may have to pay a penalty and could have your vehicle seized if you use ‘rebated’ oils like red diesel or kerosene on public roads. Report red diesel used on public roads to the Customs Hotline.

Insurance Premium Tax

Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.

You do not pay VAT on insurance.

The rate of IPT depends on the type of insurance and who supplies it.

Standard rate IPT

The rate is 12% on most types of insurance, including car, pet and home insurance.

Higher rate IPT

There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:

vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance

electronic goods and other household appliances - this includes gas central heating but not mobile phones

Exemptions

There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty

Airlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.

You do not pay VAT on the cost of flights.

The amount of APD the airline pays depends on how far away your destination is and the class you travel in.

On commercial passenger flights the duty costs from £13 to £180 per flight. There are higher charges for some private passenger planes or charters.

There’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.

You can check rates for Air Passenger Duty paid by operators.

If you do not take a flight

If you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.

Contact your airline to see if you can get a refund. You may have to pay an administration fee.


My friend Ann is from Canada . She is was visiting the UK temporarily and won a lottery during a gambling event. She won a lot of money. Would like to know if she should inform the HMRC . Does she need to pay gambling tax?

Gambling operators (for example, betting shops and websites, casinos or slot machine owners) have to pay gambling duties on profits they make from gambling. Customers do not pay duty on their stake (what they bet or pay to play) or winnings.

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate | % of VAT | What the rate applies to

Standard | 20% | Most goods and services

Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home

Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes

Check the VAT rates on different goods and services. Some things are exempt from VAT, such as postage stamps and some financial and property transactions.

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco

petrol, diesel and other fuel

insurance

goods from abroad if you go over your customs allowance

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Where you see VAT

In shops

Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.

Some shops in Northern Ireland offer tax-free shopping for visitors.

In adverts, catalogues and price lists

This depends on who they’re aimed at. If they’re for:

the general public only, they’ll show you a price including VAT

businesses as well as consumers, they might show the price with VAT and without

businesses only they do not usually include VAT, which is charged on top of the price shown

On bills and receipts

Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

How VAT is worked out

When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.

They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

If you’re eligible, you’ll pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home.

Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it.

Not all products or installations qualify for the reduced rate and you cannot buy or install them yourself.

Eligibility

To qualify for the reduced rate, you must be over 60 or getting one or more of the following:

Child Tax Credit (but not the family element)

Council Tax Benefit

Disability Living Allowance

Personal Independence Payment

a disablement pension

Housing Benefit

Jobseeker’s Allowance (income-based)

Income Support

War Disablement Pension

Working Tax Credit

You will also be eligible to get the reduced rate on the products if the total cost of them (not including VAT) is not over 60% of the cost of the installation of the products (not including VAT).

If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.

Your supplier will be responsible for charging you the correct rate of VAT.

Energy products that qualify

You pay the reduced rate of 5% for:

controls for central heating and hot water systems

draught stripping, for example insulation fixed around windows and doors to reduce draughts

insulation on walls, floors, ceilings and lofts

solar panels

ground-source heat pumps

air-source heat pumps

micro combined heat and power units

wood-fuelled boilers

Central heating systems

You pay the reduced rate of 5% for work funded through energy efficiency grants on the:

installation of heating appliances

installation, repair and maintenance of central heating systems

installation, repair and maintenance of renewable source heating systems

The reduced rate is only for the grant-funded part of the work.

Energy products that do not qualify

You pay the standard rate of VAT for:

heating appliances or systems - unless you get an energy efficiency grant

energy efficient boilers

secondary or double glazing

low emission glass

energy efficient fridge freezers

wind turbines

water turbines

VAT on mobility aids

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.

Qualifying products

You can get the reduced rate on:

grab rails

ramps

stair lifts

bath lifts

built-in shower seats or showers containing built-in shower seats

walk-in baths with sealable doors

You do not get the reduced rate if you repair or replace the goods after they’ve been installed.

You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.

How to get the reduced rate

Your supplier should know about the reduced rate and apply it. You qualify if:

you’re over 60 when the product is supplied or installed

the product is installed - you do not get the reduced rate if you just buy it

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

You’ll need to confirm to your supplier in writing that you meet these conditions. They may give you a form, or you can sign your own declaration. Ask a relative, partner or other responsible person if you’re not able to fill it in yourself.

Declaration: mobility aids for older people

Sign and date the declaration, using this standard wording.

Help from your council

If you need to adapt your home because of old age you can apply to your council for equipment or help.

Tax-free shopping

You can only buy tax-free goods from shops in Great Britain (England, Wales and Scotland) if they’re delivered straight to an address outside the UK. Check with the retailer if they offer this service.

You may be able to buy tax-free goods from some shops when you visit Northern Ireland. You claim your VAT refund when you leave Northern Ireland or the EU.

When you may be able to get a VAT refund

You can sometimes get VAT refunds on goods you buy in Northern Ireland if you:

visit Northern Ireland and live outside the UK and EU

work or study in Northern Ireland but normally live outside the UK and EU

live in Northern Ireland but are leaving the UK and EU for at least 12 months

You can only get a VAT refund if you take the goods out of Northern Ireland and the EU within 3 months of buying them. Not all retailers offer VAT refunds.

Taking goods from Northern Ireland to Great Britain

You will not get a VAT refund if you travel straight from Northern Ireland to Great Britain.

If you travel from Northern Ireland to Great Britain through another country, the goods will count towards your tax-free personal allowances. You may have to declare them along with other goods you’re carrying when you enter Great Britain and pay import VAT.

This may mean you have to pay VAT again on the goods from Northern Ireland. If this happens, you can get a refund of the overpaid VAT from the retailer.

Check the rules on bringing goods into Great Britain.

How to get a VAT refund

Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport.

Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.

Customs will approve your form if everything is in order. You then take the approved form to get paid.

If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in Northern Ireland when you check in.

Getting paid

You can either get paid immediately at a refund booth, for example at the airport, or send the approved form to the retailer or their refund company. The retailer will tell you how you’ll get paid.

Some retailers charge a fee for handling your form. This money will be deducted from your refund.

If there are no customs officials available, you can leave your form in a customs post box. Customs will check it and contact your retailer to arrange the refund if everything is in order.

Goods you cannot get a refund for

You cannot get a VAT refund for:

mail order goods, including internet sales, delivered outside of Northern Ireland

goods you’ve already used in Northern Ireland or the EU, such as perfume

service charges, such as hotel bills

new or used cars

goods worth more than £600 exported for business purposes

goods to be exported as freight

goods that need an export licence (except antiques)

unmounted gemstones

gold over 125g, 2.75 troy ounces or 10 tolas

a boat you plan to sail to a destination outside Northern Ireland or the EU

Find out more about claiming VAT back on tax-free shopping in Northern Ireland, including travelling to Great Britain and problems like losing your form.

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.

Alcohol duties are included in the price you pay for beer, cider or perry, wine or ‘made-wine’, and spirits. Made-wine is any alcoholic drink made by fermentation that’s not beer, cider, perry, spirits or wine.

You also pay standard rate VAT at 20% on alcohol and tobacco products.

Tobacco Duty

You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.

Tobacco product | Rate

Cigarettes | 16.5% of the retail price plus £4.90 on a packet of 20

Cigars | £3.05 on a 10g cigar

Hand rolling tobacco | £8.14 on a 30g packet

Other smoking tobacco and chewing tobacco (for example pipe tobacco) | £4.03 on a 30g packet

Beer Duty

How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ (ABV).

Strength (ABV) | Beer Duty rate per litre for each % of alcohol

More than 1.2%, up to 2.8% | 8.42 pence

More than 2.8%, up to 7.5% | 19.08 pence

More than 7.5% | 24.77 pence

Cider Duty

You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling.

Type of cider or perry | Strength (ABV) | Rate per litre

Still | More than 1.2% but less than up to 6.9% | 40.38 pence

Still | At least 6.9%, up to 7.5% | 50.71 pence

Still | More than 7.5% but less than 8.5% | 61.04 pence

Sparkling | More than 1.2%, up to 5.5% | 40.38 pence

Sparkling | More than 5.5% but less than 8.5% | 288.10 pence

Wine Duty

How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling.

Type of wine or made-wine | Strength (ABV) | Rate per litre

Still | More than 1.2%, up to 4% | 91.68 pence

Still | More than 4%, up to 5.5% | 126.08 pence

Still | More than 5.5%, up to 15% | 297.57 pence

Still | More than 15%, up to 22% | 396.72 pence

Sparkling | More than 8.5%, up to 15% | 381.15 pence

You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits.

Spirit Duty

You pay £28.74 of Spirit Duty per litre of pure alcohol.

Fuel Duty

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates

The rate you pay depends on the type of fuel.

Type of fuel | Rate

Petrol, diesel, biodiesel and bioethanol | 57.95 pence per litre

Liquefied petroleum gas (LPG) | 31.61 pence per kg

Natural gas used as fuel in vehicles, for example biogas | 24.70 pence per kg

‘Fuel oil’ burned in a furnace or used for heating | 10.70 pence per litre

You pay different rates on other types of fuel, depending on how they’re used.

You may have to pay a penalty and could have your vehicle seized if you use ‘rebated’ oils like red diesel or kerosene on public roads. Report red diesel used on public roads to the Customs Hotline.

Insurance Premium Tax

Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.

You do not pay VAT on insurance.

The rate of IPT depends on the type of insurance and who supplies it.

Standard rate IPT

The rate is 12% on most types of insurance, including car, pet and home insurance.

Higher rate IPT

There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:

vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance

electronic goods and other household appliances - this includes gas central heating but not mobile phones

Exemptions

There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty

Airlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.

You do not pay VAT on the cost of flights.

The amount of APD the airline pays depends on how far away your destination is and the class you travel in.

On commercial passenger flights the duty costs from £13 to £180 per flight. There are higher charges for some private passenger planes or charters.

There’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.

You can check rates for Air Passenger Duty paid by operators.

If you do not take a flight

If you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.

Contact your airline to see if you can get a refund. You may have to pay an administration fee.


My grandfather is 65 years old and physically disabled . He owns a flat and would like to install an easily accessible bath and new lighting system. For him to get a reduced VAT on the items he wishes to buy. What does he need to do to be qualify for the reduced rate?

Your supplier should know about the reduced rate and apply it. You qualify if:

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate | % of VAT | What the rate applies to

Standard | 20% | Most goods and services

Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home

Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes

Check the VAT rates on different goods and services. Some things are exempt from VAT, such as postage stamps and some financial and property transactions.

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco

petrol, diesel and other fuel

insurance

goods from abroad if you go over your customs allowance

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Gambling operators (for example, betting shops and websites, casinos or slot machine owners) have to pay gambling duties on profits they make from gambling. Customers do not pay duty on their stake (what they bet or pay to play) or winnings.

Where you see VAT

In shops

Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.

Some shops in Northern Ireland offer tax-free shopping for visitors.

In adverts, catalogues and price lists

This depends on who they’re aimed at. If they’re for:

the general public only, they’ll show you a price including VAT

businesses as well as consumers, they might show the price with VAT and without

businesses only they do not usually include VAT, which is charged on top of the price shown

On bills and receipts

Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

How VAT is worked out

When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.

They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

If you’re eligible, you’ll pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home.

Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it.

Not all products or installations qualify for the reduced rate and you cannot buy or install them yourself.

Eligibility

To qualify for the reduced rate, you must be over 60 or getting one or more of the following:

Child Tax Credit (but not the family element)

Council Tax Benefit

Disability Living Allowance

Personal Independence Payment

a disablement pension

Housing Benefit

Jobseeker’s Allowance (income-based)

Income Support

War Disablement Pension

Working Tax Credit

You will also be eligible to get the reduced rate on the products if the total cost of them (not including VAT) is not over 60% of the cost of the installation of the products (not including VAT).

If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.

Your supplier will be responsible for charging you the correct rate of VAT.

Energy products that qualify

You pay the reduced rate of 5% for:

controls for central heating and hot water systems

draught stripping, for example insulation fixed around windows and doors to reduce draughts

insulation on walls, floors, ceilings and lofts

solar panels

ground-source heat pumps

air-source heat pumps

micro combined heat and power units

wood-fuelled boilers

Central heating systems

You pay the reduced rate of 5% for work funded through energy efficiency grants on the:

installation of heating appliances

installation, repair and maintenance of central heating systems

installation, repair and maintenance of renewable source heating systems

The reduced rate is only for the grant-funded part of the work.

Energy products that do not qualify

You pay the standard rate of VAT for:

heating appliances or systems - unless you get an energy efficiency grant

energy efficient boilers

secondary or double glazing

low emission glass

energy efficient fridge freezers

wind turbines

water turbines

VAT on mobility aids

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.

Qualifying products

You can get the reduced rate on:

grab rails

ramps

stair lifts

bath lifts

built-in shower seats or showers containing built-in shower seats

walk-in baths with sealable doors

You do not get the reduced rate if you repair or replace the goods after they’ve been installed.

You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.

How to get the reduced rate

Your supplier should know about the reduced rate and apply it. You qualify if:

you’re over 60 when the product is supplied or installed

the product is installed - you do not get the reduced rate if you just buy it

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

You’ll need to confirm to your supplier in writing that you meet these conditions. They may give you a form, or you can sign your own declaration. Ask a relative, partner or other responsible person if you’re not able to fill it in yourself.

Declaration: mobility aids for older people

Sign and date the declaration, using this standard wording.

Help from your council

If you need to adapt your home because of old age you can apply to your council for equipment or help.

Tax-free shopping

You can only buy tax-free goods from shops in Great Britain (England, Wales and Scotland) if they’re delivered straight to an address outside the UK. Check with the retailer if they offer this service.

You may be able to buy tax-free goods from some shops when you visit Northern Ireland. You claim your VAT refund when you leave Northern Ireland or the EU.

When you may be able to get a VAT refund

You can sometimes get VAT refunds on goods you buy in Northern Ireland if you:

visit Northern Ireland and live outside the UK and EU

work or study in Northern Ireland but normally live outside the UK and EU

live in Northern Ireland but are leaving the UK and EU for at least 12 months

You can only get a VAT refund if you take the goods out of Northern Ireland and the EU within 3 months of buying them. Not all retailers offer VAT refunds.

Taking goods from Northern Ireland to Great Britain

You will not get a VAT refund if you travel straight from Northern Ireland to Great Britain.

If you travel from Northern Ireland to Great Britain through another country, the goods will count towards your tax-free personal allowances. You may have to declare them along with other goods you’re carrying when you enter Great Britain and pay import VAT.

This may mean you have to pay VAT again on the goods from Northern Ireland. If this happens, you can get a refund of the overpaid VAT from the retailer.

Check the rules on bringing goods into Great Britain.

How to get a VAT refund

Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport.

Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.

Customs will approve your form if everything is in order. You then take the approved form to get paid.

If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in Northern Ireland when you check in.

Getting paid

You can either get paid immediately at a refund booth, for example at the airport, or send the approved form to the retailer or their refund company. The retailer will tell you how you’ll get paid.

Some retailers charge a fee for handling your form. This money will be deducted from your refund.

If there are no customs officials available, you can leave your form in a customs post box. Customs will check it and contact your retailer to arrange the refund if everything is in order.

Goods you cannot get a refund for

You cannot get a VAT refund for:

mail order goods, including internet sales, delivered outside of Northern Ireland

goods you’ve already used in Northern Ireland or the EU, such as perfume

service charges, such as hotel bills

new or used cars

goods worth more than £600 exported for business purposes

goods to be exported as freight

goods that need an export licence (except antiques)

unmounted gemstones

gold over 125g, 2.75 troy ounces or 10 tolas

a boat you plan to sail to a destination outside Northern Ireland or the EU

Find out more about claiming VAT back on tax-free shopping in Northern Ireland, including travelling to Great Britain and problems like losing your form.

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.

Alcohol duties are included in the price you pay for beer, cider or perry, wine or ‘made-wine’, and spirits. Made-wine is any alcoholic drink made by fermentation that’s not beer, cider, perry, spirits or wine.

You also pay standard rate VAT at 20% on alcohol and tobacco products.

Tobacco Duty

You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.

Tobacco product | Rate

Cigarettes | 16.5% of the retail price plus £4.90 on a packet of 20

Cigars | £3.05 on a 10g cigar

Hand rolling tobacco | £8.14 on a 30g packet

Other smoking tobacco and chewing tobacco (for example pipe tobacco) | £4.03 on a 30g packet

Beer Duty

How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ (ABV).

Strength (ABV) | Beer Duty rate per litre for each % of alcohol

More than 1.2%, up to 2.8% | 8.42 pence

More than 2.8%, up to 7.5% | 19.08 pence

More than 7.5% | 24.77 pence

Cider Duty

You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling.

Type of cider or perry | Strength (ABV) | Rate per litre

Still | More than 1.2% but less than up to 6.9% | 40.38 pence

Still | At least 6.9%, up to 7.5% | 50.71 pence

Still | More than 7.5% but less than 8.5% | 61.04 pence

Sparkling | More than 1.2%, up to 5.5% | 40.38 pence

Sparkling | More than 5.5% but less than 8.5% | 288.10 pence

Wine Duty

How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling.

Type of wine or made-wine | Strength (ABV) | Rate per litre

Still | More than 1.2%, up to 4% | 91.68 pence

Still | More than 4%, up to 5.5% | 126.08 pence

Still | More than 5.5%, up to 15% | 297.57 pence

Still | More than 15%, up to 22% | 396.72 pence

Sparkling | More than 8.5%, up to 15% | 381.15 pence

You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits.

Spirit Duty

You pay £28.74 of Spirit Duty per litre of pure alcohol.

Fuel Duty

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates

The rate you pay depends on the type of fuel.

Type of fuel | Rate

Petrol, diesel, biodiesel and bioethanol | 57.95 pence per litre

Liquefied petroleum gas (LPG) | 31.61 pence per kg

Natural gas used as fuel in vehicles, for example biogas | 24.70 pence per kg

‘Fuel oil’ burned in a furnace or used for heating | 10.70 pence per litre

You pay different rates on other types of fuel, depending on how they’re used.

You may have to pay a penalty and could have your vehicle seized if you use ‘rebated’ oils like red diesel or kerosene on public roads. Report red diesel used on public roads to the Customs Hotline.

Insurance Premium Tax

Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.

You do not pay VAT on insurance.

The rate of IPT depends on the type of insurance and who supplies it.

Standard rate IPT

The rate is 12% on most types of insurance, including car, pet and home insurance.

Higher rate IPT

There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:

vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance

electronic goods and other household appliances - this includes gas central heating but not mobile phones

Exemptions

There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty

Airlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.

You do not pay VAT on the cost of flights.

The amount of APD the airline pays depends on how far away your destination is and the class you travel in.

On commercial passenger flights the duty costs from £13 to £180 per flight. There are higher charges for some private passenger planes or charters.

There’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.

You can check rates for Air Passenger Duty paid by operators.

If you do not take a flight

If you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.

Contact your airline to see if you can get a refund. You may have to pay an administration fee.

you’re over 60 when the product is supplied or installed

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate | % of VAT | What the rate applies to

Standard | 20% | Most goods and services

Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home

Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco

petrol, diesel and other fuel

insurance

goods from abroad if you go over your customs allowance

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Where you see VAT

In shops

Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.

Some shops in Northern Ireland offer tax-free shopping for visitors.

In adverts, catalogues and price lists

This depends on who they’re aimed at. If they’re for:

the general public only, they’ll show you a price including VAT

businesses as well as consumers, they might show the price with VAT and without

businesses only they do not usually include VAT, which is charged on top of the price shown

On bills and receipts

Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

How VAT is worked out

When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.

They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

If you’re eligible, you’ll pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home.

Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it.

Not all products or installations qualify for the reduced rate and you cannot buy or install them yourself.

Eligibility

To qualify for the reduced rate, you must be over 60 or getting one or more of the following:

Child Tax Credit (but not the family element)

Council Tax Benefit

Disability Living Allowance

Personal Independence Payment

a disablement pension

Housing Benefit

Jobseeker’s Allowance (income-based)

Income Support

War Disablement Pension

Working Tax Credit

If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.

Your supplier will be responsible for charging you the correct rate of VAT.

Energy products that qualify

You pay the reduced rate of 5% for:

controls for central heating and hot water systems

draught stripping, for example insulation fixed around windows and doors to reduce draughts

insulation on walls, floors, ceilings and lofts

solar panels

ground-source heat pumps

air-source heat pumps

micro combined heat and power units

wood-fuelled boilers

Central heating systems

You pay the reduced rate of 5% for work funded through energy efficiency grants on the:

installation of heating appliances

installation, repair and maintenance of central heating systems

installation, repair and maintenance of renewable source heating systems

The reduced rate is only for the grant-funded part of the work.

Energy products that do not qualify

You pay the standard rate of VAT for:

heating appliances or systems - unless you get an energy efficiency grant

energy efficient boilers

secondary or double glazing

low emission glass

energy efficient fridge freezers

wind turbines

water turbines

VAT on mobility aids

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.

Qualifying products

You can get the reduced rate on:

grab rails

ramps

stair lifts

bath lifts

built-in shower seats or showers containing built-in shower seats

walk-in baths with sealable doors

You do not get the reduced rate if you repair or replace the goods after they’ve been installed.

You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.

How to get the reduced rate

Your supplier should know about the reduced rate and apply it. You qualify if:

you’re over 60 when the product is supplied or installed

the product is installed - you do not get the reduced rate if you just buy it

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

Declaration: mobility aids for older people

Sign and date the declaration, using this standard wording.

Help from your council

If you need to adapt your home because of old age you can apply to your council for equipment or help.

Tax-free shopping

When you may be able to get a VAT refund

You can sometimes get VAT refunds on goods you buy in Northern Ireland if you:

visit Northern Ireland and live outside the UK and EU

work or study in Northern Ireland but normally live outside the UK and EU

live in Northern Ireland but are leaving the UK and EU for at least 12 months

Taking goods from Northern Ireland to Great Britain

You will not get a VAT refund if you travel straight from Northern Ireland to Great Britain.

This may mean you have to pay VAT again on the goods from Northern Ireland. If this happens, you can get a refund of the overpaid VAT from the retailer.

Check the rules on bringing goods into Great Britain.

How to get a VAT refund

Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport.

Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.

Customs will approve your form if everything is in order. You then take the approved form to get paid.

If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in Northern Ireland when you check in.

Getting paid

Some retailers charge a fee for handling your form. This money will be deducted from your refund.

Goods you cannot get a refund for

You cannot get a VAT refund for:

mail order goods, including internet sales, delivered outside of Northern Ireland

goods you’ve already used in Northern Ireland or the EU, such as perfume

service charges, such as hotel bills

new or used cars

goods worth more than £600 exported for business purposes

goods to be exported as freight

goods that need an export licence (except antiques)

unmounted gemstones

gold over 125g, 2.75 troy ounces or 10 tolas

a boat you plan to sail to a destination outside Northern Ireland or the EU

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.

You also pay standard rate VAT at 20% on alcohol and tobacco products.

Tobacco Duty

You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.

Tobacco product | Rate

Cigarettes | 16.5% of the retail price plus £4.90 on a packet of 20

Cigars | £3.05 on a 10g cigar

Hand rolling tobacco | £8.14 on a 30g packet

Other smoking tobacco and chewing tobacco (for example pipe tobacco) | £4.03 on a 30g packet

Beer Duty

How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ (ABV).

Strength (ABV) | Beer Duty rate per litre for each % of alcohol

More than 1.2%, up to 2.8% | 8.42 pence

More than 2.8%, up to 7.5% | 19.08 pence

More than 7.5% | 24.77 pence

Cider Duty

You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling.

Type of cider or perry | Strength (ABV) | Rate per litre

Still | More than 1.2% but less than up to 6.9% | 40.38 pence

Still | At least 6.9%, up to 7.5% | 50.71 pence

Still | More than 7.5% but less than 8.5% | 61.04 pence

Sparkling | More than 1.2%, up to 5.5% | 40.38 pence

Sparkling | More than 5.5% but less than 8.5% | 288.10 pence

Wine Duty

How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling.

Type of wine or made-wine | Strength (ABV) | Rate per litre

Still | More than 1.2%, up to 4% | 91.68 pence

Still | More than 4%, up to 5.5% | 126.08 pence

Still | More than 5.5%, up to 15% | 297.57 pence

Still | More than 15%, up to 22% | 396.72 pence

Sparkling | More than 8.5%, up to 15% | 381.15 pence

You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits.

Spirit Duty

You pay £28.74 of Spirit Duty per litre of pure alcohol.

Fuel Duty

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates

The rate you pay depends on the type of fuel.

Type of fuel | Rate

Petrol, diesel, biodiesel and bioethanol | 57.95 pence per litre

Liquefied petroleum gas (LPG) | 31.61 pence per kg

Natural gas used as fuel in vehicles, for example biogas | 24.70 pence per kg

‘Fuel oil’ burned in a furnace or used for heating | 10.70 pence per litre

You pay different rates on other types of fuel, depending on how they’re used.

Insurance Premium Tax

Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.

You do not pay VAT on insurance.

The rate of IPT depends on the type of insurance and who supplies it.

Standard rate IPT

The rate is 12% on most types of insurance, including car, pet and home insurance.

Higher rate IPT

There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:

vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance

electronic goods and other household appliances - this includes gas central heating but not mobile phones

Exemptions

There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty

Airlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.

You do not pay VAT on the cost of flights.

The amount of APD the airline pays depends on how far away your destination is and the class you travel in.

On commercial passenger flights the duty costs from £13 to £180 per flight. There are higher charges for some private passenger planes or charters.

There’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.

You can check rates for Air Passenger Duty paid by operators.

If you do not take a flight

If you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.

Contact your airline to see if you can get a refund. You may have to pay an administration fee.

the product is installed - you do not get the reduced rate if you just buy it

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate | % of VAT | What the rate applies to

Standard | 20% | Most goods and services

Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home

Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco

petrol, diesel and other fuel

insurance

goods from abroad if you go over your customs allowance

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Where you see VAT

In shops

Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.

Some shops in Northern Ireland offer tax-free shopping for visitors.

In adverts, catalogues and price lists

This depends on who they’re aimed at. If they’re for:

the general public only, they’ll show you a price including VAT

businesses as well as consumers, they might show the price with VAT and without

businesses only they do not usually include VAT, which is charged on top of the price shown

On bills and receipts

Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

How VAT is worked out

When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.

They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

If you’re eligible, you’ll pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home.

Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it.

Not all products or installations qualify for the reduced rate and you cannot buy or install them yourself.

Eligibility

To qualify for the reduced rate, you must be over 60 or getting one or more of the following:

Child Tax Credit (but not the family element)

Council Tax Benefit

Disability Living Allowance

Personal Independence Payment

a disablement pension

Housing Benefit

Jobseeker’s Allowance (income-based)

Income Support

War Disablement Pension

Working Tax Credit

If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.

Your supplier will be responsible for charging you the correct rate of VAT.

Energy products that qualify

You pay the reduced rate of 5% for:

controls for central heating and hot water systems

draught stripping, for example insulation fixed around windows and doors to reduce draughts

insulation on walls, floors, ceilings and lofts

solar panels

ground-source heat pumps

air-source heat pumps

micro combined heat and power units

wood-fuelled boilers

Central heating systems

You pay the reduced rate of 5% for work funded through energy efficiency grants on the:

installation of heating appliances

installation, repair and maintenance of central heating systems

installation, repair and maintenance of renewable source heating systems

The reduced rate is only for the grant-funded part of the work.

Energy products that do not qualify

You pay the standard rate of VAT for:

heating appliances or systems - unless you get an energy efficiency grant

energy efficient boilers

secondary or double glazing

low emission glass

energy efficient fridge freezers

wind turbines

water turbines

VAT on mobility aids

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.

Qualifying products

You can get the reduced rate on:

grab rails

ramps

stair lifts

bath lifts

built-in shower seats or showers containing built-in shower seats

walk-in baths with sealable doors

You do not get the reduced rate if you repair or replace the goods after they’ve been installed.

You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.

How to get the reduced rate

Your supplier should know about the reduced rate and apply it. You qualify if:

you’re over 60 when the product is supplied or installed

the product is installed - you do not get the reduced rate if you just buy it

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

Declaration: mobility aids for older people

Sign and date the declaration, using this standard wording.

Help from your council

If you need to adapt your home because of old age you can apply to your council for equipment or help.

Tax-free shopping

When you may be able to get a VAT refund

You can sometimes get VAT refunds on goods you buy in Northern Ireland if you:

visit Northern Ireland and live outside the UK and EU

work or study in Northern Ireland but normally live outside the UK and EU

live in Northern Ireland but are leaving the UK and EU for at least 12 months

Taking goods from Northern Ireland to Great Britain

You will not get a VAT refund if you travel straight from Northern Ireland to Great Britain.

This may mean you have to pay VAT again on the goods from Northern Ireland. If this happens, you can get a refund of the overpaid VAT from the retailer.

Check the rules on bringing goods into Great Britain.

How to get a VAT refund

Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport.

Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.

Customs will approve your form if everything is in order. You then take the approved form to get paid.

If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in Northern Ireland when you check in.

Getting paid

Some retailers charge a fee for handling your form. This money will be deducted from your refund.

Goods you cannot get a refund for

You cannot get a VAT refund for:

mail order goods, including internet sales, delivered outside of Northern Ireland

goods you’ve already used in Northern Ireland or the EU, such as perfume

service charges, such as hotel bills

new or used cars

goods worth more than £600 exported for business purposes

goods to be exported as freight

goods that need an export licence (except antiques)

unmounted gemstones

gold over 125g, 2.75 troy ounces or 10 tolas

a boat you plan to sail to a destination outside Northern Ireland or the EU

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.

You also pay standard rate VAT at 20% on alcohol and tobacco products.

Tobacco Duty

You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.

Tobacco product | Rate

Cigarettes | 16.5% of the retail price plus £4.90 on a packet of 20

Cigars | £3.05 on a 10g cigar

Hand rolling tobacco | £8.14 on a 30g packet

Other smoking tobacco and chewing tobacco (for example pipe tobacco) | £4.03 on a 30g packet

Beer Duty

How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ (ABV).

Strength (ABV) | Beer Duty rate per litre for each % of alcohol

More than 1.2%, up to 2.8% | 8.42 pence

More than 2.8%, up to 7.5% | 19.08 pence

More than 7.5% | 24.77 pence

Cider Duty

You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling.

Type of cider or perry | Strength (ABV) | Rate per litre

Still | More than 1.2% but less than up to 6.9% | 40.38 pence

Still | At least 6.9%, up to 7.5% | 50.71 pence

Still | More than 7.5% but less than 8.5% | 61.04 pence

Sparkling | More than 1.2%, up to 5.5% | 40.38 pence

Sparkling | More than 5.5% but less than 8.5% | 288.10 pence

Wine Duty

How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling.

Type of wine or made-wine | Strength (ABV) | Rate per litre

Still | More than 1.2%, up to 4% | 91.68 pence

Still | More than 4%, up to 5.5% | 126.08 pence

Still | More than 5.5%, up to 15% | 297.57 pence

Still | More than 15%, up to 22% | 396.72 pence

Sparkling | More than 8.5%, up to 15% | 381.15 pence

You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits.

Spirit Duty

You pay £28.74 of Spirit Duty per litre of pure alcohol.

Fuel Duty

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates

The rate you pay depends on the type of fuel.

Type of fuel | Rate

Petrol, diesel, biodiesel and bioethanol | 57.95 pence per litre

Liquefied petroleum gas (LPG) | 31.61 pence per kg

Natural gas used as fuel in vehicles, for example biogas | 24.70 pence per kg

‘Fuel oil’ burned in a furnace or used for heating | 10.70 pence per litre

You pay different rates on other types of fuel, depending on how they’re used.

Insurance Premium Tax

Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.

You do not pay VAT on insurance.

The rate of IPT depends on the type of insurance and who supplies it.

Standard rate IPT

The rate is 12% on most types of insurance, including car, pet and home insurance.

Higher rate IPT

There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:

vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance

electronic goods and other household appliances - this includes gas central heating but not mobile phones

Exemptions

There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty

Airlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.

You do not pay VAT on the cost of flights.

The amount of APD the airline pays depends on how far away your destination is and the class you travel in.

On commercial passenger flights the duty costs from £13 to £180 per flight. There are higher charges for some private passenger planes or charters.

There’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.

You can check rates for Air Passenger Duty paid by operators.

If you do not take a flight

If you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.

Contact your airline to see if you can get a refund. You may have to pay an administration fee.

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate | % of VAT | What the rate applies to

Standard | 20% | Most goods and services

Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home

Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco

petrol, diesel and other fuel

insurance

goods from abroad if you go over your customs allowance

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Where you see VAT

In shops

Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.

Some shops in Northern Ireland offer tax-free shopping for visitors.

In adverts, catalogues and price lists

This depends on who they’re aimed at. If they’re for:

the general public only, they’ll show you a price including VAT

businesses as well as consumers, they might show the price with VAT and without

businesses only they do not usually include VAT, which is charged on top of the price shown

On bills and receipts

Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

How VAT is worked out

When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.

They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

If you’re eligible, you’ll pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home.

Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it.

Not all products or installations qualify for the reduced rate and you cannot buy or install them yourself.

Eligibility

To qualify for the reduced rate, you must be over 60 or getting one or more of the following:

Child Tax Credit (but not the family element)

Council Tax Benefit

Disability Living Allowance

Personal Independence Payment

a disablement pension

Housing Benefit

Jobseeker’s Allowance (income-based)

Income Support

War Disablement Pension

Working Tax Credit

If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.

Your supplier will be responsible for charging you the correct rate of VAT.

Energy products that qualify

You pay the reduced rate of 5% for:

controls for central heating and hot water systems

draught stripping, for example insulation fixed around windows and doors to reduce draughts

insulation on walls, floors, ceilings and lofts

solar panels

ground-source heat pumps

air-source heat pumps

micro combined heat and power units

wood-fuelled boilers

Central heating systems

You pay the reduced rate of 5% for work funded through energy efficiency grants on the:

installation of heating appliances

installation, repair and maintenance of central heating systems

installation, repair and maintenance of renewable source heating systems

The reduced rate is only for the grant-funded part of the work.

Energy products that do not qualify

You pay the standard rate of VAT for:

heating appliances or systems - unless you get an energy efficiency grant

energy efficient boilers

secondary or double glazing

low emission glass

energy efficient fridge freezers

wind turbines

water turbines

VAT on mobility aids

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.

Qualifying products

You can get the reduced rate on:

grab rails

ramps

stair lifts

bath lifts

built-in shower seats or showers containing built-in shower seats

walk-in baths with sealable doors

You do not get the reduced rate if you repair or replace the goods after they’ve been installed.

You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.

How to get the reduced rate

Your supplier should know about the reduced rate and apply it. You qualify if:

you’re over 60 when the product is supplied or installed

the product is installed - you do not get the reduced rate if you just buy it

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

Declaration: mobility aids for older people

Sign and date the declaration, using this standard wording.

Help from your council

If you need to adapt your home because of old age you can apply to your council for equipment or help.

Tax-free shopping

When you may be able to get a VAT refund

You can sometimes get VAT refunds on goods you buy in Northern Ireland if you:

visit Northern Ireland and live outside the UK and EU

work or study in Northern Ireland but normally live outside the UK and EU

live in Northern Ireland but are leaving the UK and EU for at least 12 months

Taking goods from Northern Ireland to Great Britain

You will not get a VAT refund if you travel straight from Northern Ireland to Great Britain.

This may mean you have to pay VAT again on the goods from Northern Ireland. If this happens, you can get a refund of the overpaid VAT from the retailer.

Check the rules on bringing goods into Great Britain.

How to get a VAT refund

Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport.

Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.

Customs will approve your form if everything is in order. You then take the approved form to get paid.

If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in Northern Ireland when you check in.

Getting paid

Some retailers charge a fee for handling your form. This money will be deducted from your refund.

Goods you cannot get a refund for

You cannot get a VAT refund for:

mail order goods, including internet sales, delivered outside of Northern Ireland

goods you’ve already used in Northern Ireland or the EU, such as perfume

service charges, such as hotel bills

new or used cars

goods worth more than £600 exported for business purposes

goods to be exported as freight

goods that need an export licence (except antiques)

unmounted gemstones

gold over 125g, 2.75 troy ounces or 10 tolas

a boat you plan to sail to a destination outside Northern Ireland or the EU

Find out more about claiming VAT back on tax-free shopping in Northern Ireland, including travelling to Great Britain and problems like losing your form.

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.

You also pay standard rate VAT at 20% on alcohol and tobacco products.

Tobacco Duty

You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.

Tobacco product | Rate

Cigarettes | 16.5% of the retail price plus £4.90 on a packet of 20

Cigars | £3.05 on a 10g cigar

Hand rolling tobacco | £8.14 on a 30g packet

Other smoking tobacco and chewing tobacco (for example pipe tobacco) | £4.03 on a 30g packet

Beer Duty

How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ (ABV).

Strength (ABV) | Beer Duty rate per litre for each % of alcohol

More than 1.2%, up to 2.8% | 8.42 pence

More than 2.8%, up to 7.5% | 19.08 pence

More than 7.5% | 24.77 pence

Cider Duty

You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling.

Type of cider or perry | Strength (ABV) | Rate per litre

Still | More than 1.2% but less than up to 6.9% | 40.38 pence

Still | At least 6.9%, up to 7.5% | 50.71 pence

Still | More than 7.5% but less than 8.5% | 61.04 pence

Sparkling | More than 1.2%, up to 5.5% | 40.38 pence

Sparkling | More than 5.5% but less than 8.5% | 288.10 pence

Wine Duty

How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling.

Type of wine or made-wine | Strength (ABV) | Rate per litre

Still | More than 1.2%, up to 4% | 91.68 pence

Still | More than 4%, up to 5.5% | 126.08 pence

Still | More than 5.5%, up to 15% | 297.57 pence

Still | More than 15%, up to 22% | 396.72 pence

Sparkling | More than 8.5%, up to 15% | 381.15 pence

You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits.

Spirit Duty

You pay £28.74 of Spirit Duty per litre of pure alcohol.

Fuel Duty

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates

The rate you pay depends on the type of fuel.

Type of fuel | Rate

Petrol, diesel, biodiesel and bioethanol | 57.95 pence per litre

Liquefied petroleum gas (LPG) | 31.61 pence per kg

Natural gas used as fuel in vehicles, for example biogas | 24.70 pence per kg

‘Fuel oil’ burned in a furnace or used for heating | 10.70 pence per litre

You pay different rates on other types of fuel, depending on how they’re used.

Insurance Premium Tax

Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.

You do not pay VAT on insurance.

The rate of IPT depends on the type of insurance and who supplies it.

Standard rate IPT

The rate is 12% on most types of insurance, including car, pet and home insurance.

Higher rate IPT

There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:

vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance

electronic goods and other household appliances - this includes gas central heating but not mobile phones

Exemptions

There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty

Airlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.

You do not pay VAT on the cost of flights.

The amount of APD the airline pays depends on how far away your destination is and the class you travel in.

On commercial passenger flights the duty costs from £13 to £180 per flight. There are higher charges for some private passenger planes or charters.

There’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.

You can check rates for Air Passenger Duty paid by operators.

If you do not take a flight

If you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.

Contact your airline to see if you can get a refund. You may have to pay an administration fee.

Tax on shopping and services

VAT and duties

VAT is a tax you pay on most goods and services.

Rate | % of VAT | What the rate applies to

Standard | 20% | Most goods and services

Reduced rate | 5% | Some goods and services, for example children’s car seats and some energy-saving materials in the home

Zero rate | 0% | Zero-rated goods and services, for example most food and children’s clothes

VAT is normally included in the price you see in shops, but there are some exceptions.

VAT and disabled people

You do not have to pay VAT on certain goods and services if they’re just for your own use and you’re disabled or have a long-term illness.

Other taxes and duties

You pay different taxes on:

alcohol and tobacco

petrol, diesel and other fuel

insurance

goods from abroad if you go over your customs allowance

Airlines have to pay air passenger duty for every flight from the UK. Most airline tickets include a separate charge to cover this cost.

Where you see VAT

In shops

Any VAT due is already included in the price of something you buy in a shop. No tax is added when you pay.

Some shops in Northern Ireland offer tax-free shopping for visitors.

In adverts, catalogues and price lists

This depends on who they’re aimed at. If they’re for:

the general public only, they’ll show you a price including VAT

businesses as well as consumers, they might show the price with VAT and without

businesses only they do not usually include VAT, which is charged on top of the price shown

On bills and receipts

Sometimes VAT is shown on a separate line. This does not mean you’re paying extra - it just shows how much tax is included in the price.

Invoices from suppliers like builders, painters and decorators must show a separate amount for VAT and their VAT registration number.

How VAT is worked out

When someone charges you VAT they multiply their selling price by the VAT rate to calculate the amount of VAT to charge.

They then add this to the selling price to give you the price you actually pay - this is called the ‘gross’ price.

VAT on energy-saving products

If you’re eligible, you’ll pay a reduced rate of VAT (5%) when certain energy-saving products are installed in your home.

Your supplier will charge you the reduced rate on the installation and any extra work that’s part of it.

Not all products or installations qualify for the reduced rate and you cannot buy or install them yourself.

Eligibility

To qualify for the reduced rate, you must be over 60 or getting one or more of the following:

Child Tax Credit (but not the family element)

Council Tax Benefit

Disability Living Allowance

Personal Independence Payment

a disablement pension

Housing Benefit

Jobseeker’s Allowance (income-based)

Income Support

War Disablement Pension

Working Tax Credit

If your products cost more than 60% of the installation, you’ll only be entitled to the reduced rate on the installation.

Your supplier will be responsible for charging you the correct rate of VAT.

Energy products that qualify

You pay the reduced rate of 5% for:

controls for central heating and hot water systems

draught stripping, for example insulation fixed around windows and doors to reduce draughts

insulation on walls, floors, ceilings and lofts

solar panels

ground-source heat pumps

air-source heat pumps

micro combined heat and power units

wood-fuelled boilers

Central heating systems

You pay the reduced rate of 5% for work funded through energy efficiency grants on the:

installation of heating appliances

installation, repair and maintenance of central heating systems

installation, repair and maintenance of renewable source heating systems

The reduced rate is only for the grant-funded part of the work.

Energy products that do not qualify

You pay the standard rate of VAT for:

heating appliances or systems - unless you get an energy efficiency grant

energy efficient boilers

secondary or double glazing

low emission glass

energy efficient fridge freezers

wind turbines

water turbines

VAT on mobility aids

If you’re over 60, you pay a reduced rate of VAT (5%) on certain mobility aids when you pay for them to be supplied and installed in your home.

Qualifying products

You can get the reduced rate on:

grab rails

ramps

stair lifts

bath lifts

built-in shower seats or showers containing built-in shower seats

walk-in baths with sealable doors

You do not get the reduced rate if you repair or replace the goods after they’ve been installed.

You do not have to order and pay for the product yourself - a friend, local council, charity or housing association can do it for you.

How to get the reduced rate

Your supplier should know about the reduced rate and apply it. You qualify if:

you’re over 60 when the product is supplied or installed

the product is installed - you do not get the reduced rate if you just buy it

the product is for a private home, for example your own home or one shared with friends or relatives (a residential care home does not qualify)

Declaration: mobility aids for older people

Sign and date the declaration, using this standard wording.

Help from your council

If you need to adapt your home because of old age you can apply to your council for equipment or help.

Tax-free shopping

When you may be able to get a VAT refund

You can sometimes get VAT refunds on goods you buy in Northern Ireland if you:

visit Northern Ireland and live outside the UK and EU

work or study in Northern Ireland but normally live outside the UK and EU

live in Northern Ireland but are leaving the UK and EU for at least 12 months

Taking goods from Northern Ireland to Great Britain

You will not get a VAT refund if you travel straight from Northern Ireland to Great Britain.

This may mean you have to pay VAT again on the goods from Northern Ireland. If this happens, you can get a refund of the overpaid VAT from the retailer.

Check the rules on bringing goods into Great Britain.

How to get a VAT refund

Get a VAT 407 form from the retailer - they might ask for proof that you’re eligible, for example your passport.

Show the goods, the completed form and your receipts to customs at the point when you leave Northern Ireland or the EU.

Customs will approve your form if everything is in order. You then take the approved form to get paid.

If you’re changing planes in an EU country and checking your goods with your luggage, you must do step 2 in Northern Ireland when you check in.

Getting paid

Some retailers charge a fee for handling your form. This money will be deducted from your refund.

Goods you cannot get a refund for

You cannot get a VAT refund for:

mail order goods, including internet sales, delivered outside of Northern Ireland

goods you’ve already used in Northern Ireland or the EU, such as perfume

service charges, such as hotel bills

new or used cars

goods worth more than £600 exported for business purposes

goods to be exported as freight

goods that need an export licence (except antiques)

unmounted gemstones

gold over 125g, 2.75 troy ounces or 10 tolas

a boat you plan to sail to a destination outside Northern Ireland or the EU

Find out more about claiming VAT back on tax-free shopping in Northern Ireland, including travelling to Great Britain and problems like losing your form.

Alcohol and tobacco duties

Tobacco Duty is included in the price you pay for cigarettes, cigars and other tobacco products.

You also pay standard rate VAT at 20% on alcohol and tobacco products.

Tobacco Duty

You pay different rates of Tobacco Duty on cigarettes, cigars and other tobacco products.

Tobacco product | Rate

Cigarettes | 16.5% of the retail price plus £4.90 on a packet of 20

Cigars | £3.05 on a 10g cigar

Hand rolling tobacco | £8.14 on a 30g packet

Other smoking tobacco and chewing tobacco (for example pipe tobacco) | £4.03 on a 30g packet

Beer Duty

How much Beer Duty you pay depends on the beer’s strength, or ‘alcohol by volume’ (ABV).

Strength (ABV) | Beer Duty rate per litre for each % of alcohol

More than 1.2%, up to 2.8% | 8.42 pence

More than 2.8%, up to 7.5% | 19.08 pence

More than 7.5% | 24.77 pence

Cider Duty

You pay Cider Duty on cider and perry. How much depends on the strength and whether it’s still or sparkling.

Type of cider or perry | Strength (ABV) | Rate per litre

Still | More than 1.2% but less than up to 6.9% | 40.38 pence

Still | At least 6.9%, up to 7.5% | 50.71 pence

Still | More than 7.5% but less than 8.5% | 61.04 pence

Sparkling | More than 1.2%, up to 5.5% | 40.38 pence

Sparkling | More than 5.5% but less than 8.5% | 288.10 pence

Wine Duty

How much Wine Duty you pay depends on the strength of the wine (or made-wine) and whether it’s still or sparkling.

Type of wine or made-wine | Strength (ABV) | Rate per litre

Still | More than 1.2%, up to 4% | 91.68 pence

Still | More than 4%, up to 5.5% | 126.08 pence

Still | More than 5.5%, up to 15% | 297.57 pence

Still | More than 15%, up to 22% | 396.72 pence

Sparkling | More than 8.5%, up to 15% | 381.15 pence

You pay duty on wine and made-wine of more than 22% ABV at the same rate as spirits.

Spirit Duty

You pay £28.74 of Spirit Duty per litre of pure alcohol.

Fuel Duty

Fuel Duty is included in the price you pay for petrol, diesel and other fuels used in vehicles or for heating.

You also pay standard rate VAT at 20% on most fuel, or the reduced rate of 5% on domestic heating fuel.

Fuel Duty rates

The rate you pay depends on the type of fuel.

Type of fuel | Rate

Petrol, diesel, biodiesel and bioethanol | 57.95 pence per litre

Liquefied petroleum gas (LPG) | 31.61 pence per kg

Natural gas used as fuel in vehicles, for example biogas | 24.70 pence per kg

‘Fuel oil’ burned in a furnace or used for heating | 10.70 pence per litre

You pay different rates on other types of fuel, depending on how they’re used.

Insurance Premium Tax

Insurance Premium Tax (IPT) is usually included in the price you pay for insurance.

You do not pay VAT on insurance.

The rate of IPT depends on the type of insurance and who supplies it.

Standard rate IPT

The rate is 12% on most types of insurance, including car, pet and home insurance.

Higher rate IPT

There’s a higher rate of 20% for travel insurance, and insurance arranged by the supplier (rather than an insurance company) on:

vehicles, including hired vehicles - but the standard 12% rate is charged on ordinary motor insurance

electronic goods and other household appliances - this includes gas central heating but not mobile phones

Exemptions

There’s no IPT on life insurance and income protection insurance.

Air Passenger Duty

Airlines pay Air Passenger Duty (APD) for every passenger who flies from the UK. Ticket prices usually include a charge to cover this cost.

You do not pay VAT on the cost of flights.

The amount of APD the airline pays depends on how far away your destination is and the class you travel in.

On commercial passenger flights the duty costs from £13 to £180 per flight. There are higher charges for some private passenger planes or charters.

There’s no APD on long-haul flights from Northern Ireland or flights from the Scottish Highlands and Islands region.

You can check rates for Air Passenger Duty paid by operators.

If you do not take a flight

If you do not take a flight you may be able to get a refund of anything you paid to cover APD costs.

Contact your airline to see if you can get a refund. You may have to pay an administration fee.