Deck the malls: Christmas shopping in the US

The US dollar’s recent dive has come at just the right time for bargain hunters. With one shiny pound coin worth almost $2 and plenty of airline sales on, a trip to the States for Christmas shopping is this year’s must-do.

Paul Charles, a spokesman for Virgin, told The Guardian recently: "Brits will always look for a bargain and if the bargain is in New York on the back of better exchange rates then they will take it."

Over the past fortnight, Virgin has experienced a 20 per cent increase in bookings on this time last year. It is just one of the airlines with a sale on flights to the US. American Airlines, United Airlines and British Airways are all advertising lower fares - from £238 return including taxes.

The video iPod is one of this year’s most popular gadgets and is selling at about £190 in the UK, but is about $249 (or £128) in the US. Designer jeans, about £65 on the UK high street, retail for the equivalent of about £18.

While the cost of Christmas presents may have halved, the value of goods that you can bring back to the UK has not. There is a rather grinchy limit of £145 on goods. This is on top of one litre of spirits, two litres of wine and 200 cigarettes (or 100 cigarillos or 50 cigars or 250g of tobacco), 60cc of perfume and 250cc of eau de toilette.

If a traveller is found to have more than £145 worth of goods, they will have to pay import duties and VAT. The rules on the amount of duty payable are difficult to work out in advance, but budget anything from a quarter to a third of the value.

- For the rules on bringing back bargains, read Customs - What you can bring back legally from your hols.

© Cheapflights Ltd Oonagh Shiel