Transfer of Residence Exemption
If you have owned the vehicle for at least six months and lived outside of the UK for at least one year (185 consecutive days) and are moving back to the UK permanently, then you will not have to pay any import VAT or duty.
To qualify, you'll need proof of foreign residency from at least one year ago (utility bill, bank or mortgage statement) and proof of vehicle ownership from at least six months ago (insurance certificate or registration document).
EU-Manufactured Vehicles: When Does 0% Duty Apply?
Cars manufactured in the EU (e.g., Mercedes, BMW, Porsche, Audi) can qualify for 0% import duty under the UK-EU trade agreement, but the exemption is not automatic, and it does not depend on where the car is registered. To claim it, the seller/exportermust hold a valid exporter reference number and make a declaration of the vehicle's EU origin. HMRC does not accept proof of origin from the manufacturer: only the origin declaration from the exporter selling you the car.
In practice this means that if you buy an EU-manufactured car: say a Mercedes: from a private seller, they will almost never hold an exporter reference, so you should expect to pay the full 10% duty plus 20% VAT (unless the car is over 30 years old, where the classic rate of 0% duty and 5% VAT applies regardless). Dealers and traders who regularly export can make the declaration; always confirm before you buy if the 0% duty rate matters to your budget.
Classic Vehicles (Over 30 Years Old)
HMRC allows certain vehicles over 30 years old into the UK without paying duty, with only 5% VAT. The vehicle must be in original form with no major modifications to engine, chassis, etc. Different conditions apply: contact us for guidance on the BTI Scheme 9705.
Post-Brexit EU Imports
Importing from the EU now requires 20% VAT on the current vehicle value (unless you qualify for Transfer of Residence or the vehicle is over 30 years old at 5% VAT). Duty is 10% unless the car is EU-manufactured and the exporter provides a valid origin declaration (see above). Export paperwork must be completed before moving the vehicle, a customs entry made on UK arrival, and NOVA applied for.
Pickup Trucks & Commercial Vehicles
Most pickup trucks are 10% duty and 20% VAT. However, if classed as commercial (no sat nav, single row of seats, no air con, etc.), they may levy 22% duty and 20% VAT. VAT-registered businesses may be able to reclaim the VAT: consult your accountant.
Temporary Imports
Planning to keep the car in the UK for less than six months? Complete a C110 form and pay no tax or duty. The vehicle must already be registered outside the UK, and you may need temporary import plates if the existing plates use non-UK lettering.
Business Imports
If importing as a VAT-registered company, provide a letter on headed paper stating you wish to import under your VAT registration number. You'll then apply for NOVA through your Government Gateway account.
How Duty & VAT Are Calculated
Import duty and VAT are calculated on the invoice showing what you paid for the vehicle and shipping (the "Landed Value"). This is converted to GBP using HMRC's monthly exchange rate, then multiplied by the applicable duty rate. VAT is then calculated on the total (including duty).
Returning UK Vehicles
If you owned a car in the UK, exported it to Europe, registered it there, and now wish to re-import it: as long as the car has never changed ownership, there will be no tax or duty to pay.
Required Forms
C384 Form
For most imports: vehicles owned less than six months, European cars, trucks, etc.
Transfer of Residence (ToR) Form
For vehicles owned 6+ months if you've lived outside the UK for 12+ months.
C110 Form
For temporary imports (staying in UK less than 6 months).