Tuesday, 2 November 2010

Holiday Rental Owners Take Another Blow As UK Government Hikes Holiday Related Taxes

This week the UK sees a further hike in Holiday related taxes that will impact on Holiday Home Owners and a shell shocked travel industry.

For the 3rd year in a row, the UK government has hiked the Air Passengers Duty tax as a way to raise revenues, and as of the 1st November these hikes will see a 50% increase in tax on flights to the Caribbean and a 33% increase in tax of flights to Florida. 

What does this mean for the average family? 

A family of 4, travelling by air and booking a villa rental will now see an increase of £240 on the total cost of their holiday, whilst for those travelling further a field a whooping £75 per person will be payable in additional taxes. 

With the current economic climate, many families were barely affording a family holiday before these taxes hikes came into effect and if this trend continues it may not take long for families to forego a foreign holiday altogether. 

With the UK already paying the highest percentage of taxes anywhere in Europe are we leaving our holiday rental owners and the travel industry at large struggling to fill an already gaping hole and further hindering any recovery for the sector?