Covid tests for British holidaymakers could cost less than £50 under new plans considered by the Treasury, according to reports.
HMRC is looking to exempt private tests from VAT which would see people saving hundreds of pounds, the Telegraph reports.
Gold standard PCR tests that are administered or overseen by a registered nurse will also be exempt from the tax.
Sources told the publisher that the Treasury could go further and fully exempt the tests from the charge.
How much will the tests cost?
The tests can range from £60 to £300 per test including the 20 per cent from VAT.
Under these new plans, the exemption would mean an approximate saving of between £40 to £240 for a family of four, the media outlet reports.
How the traffic light system will work for testing
It is hoped that travel abroad for holidays will resume for Britons on May 17 through a traffic light system.
Countries will be placed on a green, amber or red list, depending on how high or low the risk is on their Covid situation.
All travellers returning to the UK must take at least one PCR test - even if they are coming from a ‘green list’ country.
Those travelling from ‘amber list’ countries will have to take two PCR tests during their 10-day quarantine at home.
While holidaymakers returning from ‘red list’ countries will also have to take two PCR tests during a 10-day quarantine in a Government-approved hotel.
Most European countries have also exempted tests from VAT after the EU recommended the move.