Tax tips given for spend-happy travellers

British holidaymakers looking to take advantage of the strong pound versus the dollar have been advised to keep an eye on their tax-free limits.

The pound has been hovering around the $2 mark this week, meaning that those flying to the USA could find themselves some shopping bargains on the other side of the Atlantic.

However, Sean Tipton, spokesperson for the Association of British Travel Agents, said that with a little prudence shoppers can keep within the £175 limit for getting goods back home without paying tax.

"Electrical goods and clothes are a lot cheaper in America in the first place - so you can buy a surprising amount," he commented.

He added: "Even if you stick within the limit - and we would advise people to do so - you can bring a substantial amount back with you."

When asked about the effect of the strong pound on flight prices themselves, Mr Tipton said that it is likely Americans will be reluctant to come over to the UK as a result of the pound being so expensive - meaning that there will be extra capacity on transatlantic routes.

Popular destinations for holidaymakers heading to the USA include New York, Florida and Las Vegas, he added.

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