What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual in England and Wales?
The UK left the European Union (EU) with effect from 1 January 2020. However, the rules that applied to the UK as members of the EU will not change until the end of the transition period on 1 January 2021. As such, a purchaser of goods brought into the UK from an EU member state continues to pay acquisition value added tax (VAT) (as under EU law, there is no ‘import’ or ‘export’ of goods or services between member states).
One or more of UK customs duty, excise duty or import VAT may be payable on certain assets imported to the UK from a country outside the EU. In the case of import VAT, it may also be payable on imports from certain EU ‘special territories’, including the Aland Islands, Canary Islands, Channel Islands, French Overseas Departments of Guadeloupe, French Guiana, Martinique, Reunion and Mount Athos (also known as Agion Oros).
There are certain reliefs, including a relief for personal belongings of a certain class or value and private motor vehicles from outside the EU, and for sailing pleasure craft to and from the UK. Imported works of art, antiques and collectors’ items may be entitled to a reduced valuation at importation for the purposes of duty and import VAT.
In practice, there are no export taxes, duties or levies payable on goods being exported from the EU. VAT is levied on a supply of goods from the UK (whether to a place inside or outside the EU) but is zero-rated (charged at zero per cent).
Once the transition period ends on 1 January 2021, customs declarations will be required for imports of goods to the UK from the EU, and duty and import VAT are likely to be payable unless an exemption or relief is available. Customs declarations will also be necessary to export goods to the EU, and export licences may also be required. However, once the terms of the UK’s departure are clear, additional rules may apply.
England & Wales Guide
The England & Wales guide answers the principal questions for Private Clients relating to the law in this jurisdiction.
