Following consultation with industry, the United Kingdom (UK) Government has reviewed the excise duty and value-added tax (VAT) treatment of goods purchased by individuals for their own use and carried across borders in their luggage.
Currently these reliefs are largely set out in European Union (EU) legislation, with different rules for those travelling to or from the EU, and those travelling to or from non-EU countries. These rules will need to be aligned following the transition period to remain compliant with World Trade Organization (WTO) rules which, broadly, require the UK to treat goods carried by passengers bound for, or arriving from, different destinations equally.
Source EY
