vat lower? - price to pay?

[innithou]

With the VAT being lowered on Monday - I have yet to pay for a holiday that I am taking next April - we have only paid the deposit - do you think we will be able to get the holiday at a lower price now the VAT is going to be reduced?

[Hawkwalk]

possibly but not by much as there is no uk vat on flights or on over-seas hotels so it will only be on a small percentage of the holiday.

[auntiebertie]

No VAT on cruises either so makes no difference there.

[buildersmate]

As Halkwalk says, Tour Operators pay VAT only on their margin, not on the whole cost of the holiday. So prices won't change much.

[kira000]

The government is announcing that it is putting up the departures tax on flights next year, so chances are the VAT decrease will be offset by the APD rise if you are flying next year.

I'd just pay now- too many uncertains mean otherwise you could end up paying more.

[innithou]

thank you all so much - I shall approach the travel agent and see how I get on :-)