In the UK, a common example is Value Added Tax (VAT), which is typically set at 20% for most goods and services. This means that if a product costs £100, an additional £20 is added as VAT, making the total price £120.

Unlike a specific tax, which is fixed per unit, an ad valorem tax increases with the price of the item. For instance, luxury items like designer clothes or expensive electronics incur higher total tax amounts because their prices are higher.

Another UK example is Stamp Duty Land Tax on property purchases, which is charged as a percentage of the property’s value. Ad valorem taxes are often seen as progressive in nature, since people buying more expensive items pay more in tax.