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Travellers can now bring back more than double the amount of gifts and souvenirs from outside the EU without paying UK duty.

From 1 December 2008, the tax and duty-free allowance rises from £145 to £300, with a further increase to £340 in January 2009 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 has announced 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: "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. "

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.