Customs
The vast majority of cars imported into the UK fall under three categories in terms of import taxes payable to Her Majesty’s Revenue and Customs. The Personal import scheme, vehicles that are commercially imported or vehicles being imported from within the European Union. These are outlined below.
The Personal Import Scheme or Transfer of Residency
The personal import scheme is designed for people who are transferring their residency to the UK from outside of the EU. It covers the importation of all their goods that have been owned by them for more than 6 months prior to being imported into the UK. It allows people who have lived outside the EU for more than 12 months to bring their goods into the UK free of import duty and import VAT. This in our case includes vehicles and the documentary evidence required to prove the personal import status can be foreign registration certificates, insurance policies and utility bills etc. Please contact us for clarification you meet the criteria and any further information you require.
Commercial Imports
Whether you are a VAT registered motor trader or not if you do not meet the personal import criteria you will be liable to pay HMRC import taxes when importing a car from outside the EU. These are import duty at 10% and import VAT at 17.5%. They are calculated as below:
(Invoice value of the car + value of the shipping) + 10% Duty) + UK Port charges + 17.5% VAT
If your vehicle was manufactured in the EU your Duty is reduced to a flat rate of £50.
Please contact us for more information.
Imports from within the European Union
If you are importing vehicles from within the European Union, providing we have proof of VAT and Duty being paid in a member state, you will not be liable for any further taxes in the UK.