The EU has announced changes to the Duty Free Allowances on Gifts and Souvenirs from outside the EU.

In the UK
Double duty-free allowance for travellers returning to the UK

Travellers can now bring back more than double the amount of gifts and souvenirs from outside the EU without paying UK duty. From today, the tax and duty-free allowance increases from £145 to £300, with a further increase to £340 in January to take account of recent changes in the sterling/euro exchange rate.

Following a proposal from the then Chancellor of the Exchequer Gordon Brown to the European Commission in 2004, the Government is today announcing an increase to the allowance for what are known as 'other goods', which includes souvenirs, clothing, electrical goods and perfume.

Travellers and holiday makers will also be able to bring back more alcohol, with a new allowance for beer of 16 litres and a doubling in the allowance of still wine, from two to four litres.

Financial Secretary to the Treasury, Stephen Timms, said today:
"This new rate for all EU member states will be a welcome boost to holiday makers and all others travelling outside the EU. The changes stem from an initiative by the then Chancellor, Gordon Brown, and demonstrate the benefits of the UK working at the heart of Europe. "

1. Today (1 December 2008) sees EU Council Directive 2007/74/EC start to apply following the EU political agreement reached at ECOFIN in November 2006 to increase the Travellers Allowance for all member states.

2. Several other changes to the tax and duty free allowances will also take effect on 1 December 2008:
* Travellers to the UK in private planes or boats for pleasure purposes will not be entitled to the £300 allowance. Instead they will be entitled to an 'other goods' allowance of £210, increasing to £240 on 1 January 2009.
* There will be a new allowance for beer of 16 litres.
* The allowance for still wine will increase from 2 litres to 4 litres.
* The current allowance on perfume and eau de toilette will be abolished. These products will now fall in 'other goods'.
* There are no changes to the current allowances for tobacco products and fuel.

3. Travellers are entitled to the individual allowances providing that the goods are for own use and transported by them.

4. Travellers who require further information should call the National Advice Service on 0845 010 9000 or visit the HM Revenue and Customs website at http://www.hmrc.gov.uk

Gibraltar
Issues affecting Gibraltar will be a beneficial increase in the 'allowance' of perfume and electrical goods.
A provision for individual states to limit tobacco products from 200 cigarettes down to 40 would seriously affect Gibraltar's cigarette businesses, who supply day visitors with tens of thousands of cigarrettes per day. It is as yet unclear whether Spain are going to change their quota.

Previously travellers entering Europe by land, sea or air were allowed to carry up to 175€ in goods without having to pay duty or taxes.

Leaving Gibraltar by By Air or Sea
That limit has now been increased to 300€ for travellers entering by land and 430€ for those travelling by air or sea.
In the best case, air travellers can import duty-free 200 cigarettes, one litre of spirits, four litres of wine, 16 litres of beer and 430€ of other goods such as toys, perfume and electronic devices.

Leaving Gibraltar by land
Going by land to Spain across the frontier to La Linea you can now take 200 cigarettes*, one litre of spirits, four litres of wine, 16 litres of beer and 300€ of other goods such as toys, perfume and electronic devices.

*Could be reduced to 40 if Spain wish to.