Goods sent to the United Kingdom attract UK customs duty once their intrinsic value goes above £135, with import VAT at 20% charged on top of the goods, shipping, and any duty already applied. HM Revenue and Customs sets the rate for each product through its commodity code, and a trade agreement with the country of origin can reduce that rate to zero. Personal parcels, gifts, and belongings you bring when relocating each have their own rules.
The £135 Threshold
Most goods shipped to the UK from abroad escape customs duty if their intrinsic value is £135 or less.1GOV.UK. Reforming the Customs Treatment of Low Value Imports Into the United Kingdom Intrinsic value means the price of the goods alone, so a £120 item with £30 of postage still sits under the line. Import VAT still applies to these low-value goods; only customs duty is waived.
Once the intrinsic value crosses £135, duty is calculated on the full customs value, which does include transport and insurance to the UK border.2GOV.UK. Delivery Costs to Include in the Customs Value Import VAT at 20% is then charged on the combined goods value, shipping, and duty. That stacking is what catches people out. A £200 item can easily attract £30 to £50 in combined charges once duty, VAT, and the carrier’s handling fee are added.
At Autumn Budget 2025, the Chancellor announced that the £135 relief will be removed by March 2029 at the latest, meaning customs duty will eventually apply to low-value imports as well.1GOV.UK. Reforming the Customs Treatment of Low Value Imports Into the United Kingdom For now the relief still stands.
Alcohol and tobacco sit outside these rules. Excise duty applies to them regardless of value, so even a single bottle of wine sent from abroad triggers a charge, and undeclared excise goods can be seized.
How the Duty Is Calculated
Two things set what you owe: the commodity code for your goods and the customs value of the shipment.
Every product imported into the UK is classified under a commodity code, sometimes called an HS code, and that code fixes the duty rate. A laptop, a pair of trainers, and a handbag each fall under different codes with different rates. The government’s Trade Tariff tool lets you look up the correct code and the duty and VAT rates that attach to it.3GOV.UK. Trade Tariff: Look Up Commodity Codes, Duty and VAT Rates Getting the code wrong is a common mistake and can mean overpaying or underpaying.
Rates for most consumer goods run from 0% to about 25% of the customs value, depending on the product and its country of origin. Electronics often sit at the lower end; clothing and footwear sit higher. The customs value is the price paid for the goods plus shipping and insurance to the UK border.2GOV.UK. Delivery Costs to Include in the Customs Value HMRC checks these figures against the commercial invoice, so accurate receipts matter.
Preferential Rates Through Trade Agreements
Goods manufactured in a country with a UK trade agreement may qualify for a reduced or zero rate. The most significant agreement for everyday imports is the UK-EU Trade and Cooperation Agreement, which allows many EU-origin goods into the UK duty-free.4GOV.UK. Introduction to Rules of Origin and Claiming Duties When Trading Between the UK and EU
Proving origin is the catch. Goods must genuinely originate in the partner country, not just pass through it. To claim a preferential rate you need either a statement on origin from the exporter or enough knowledge of the product’s manufacturing history to self-certify on your import declaration. Without that, the standard tariff applies, which is almost always higher. If you are ordering from an EU-based retailer, ask about origin documentation before you buy.
Gifts
Gifts sent between private individuals get a more generous VAT threshold. A gift valued at £39 or less is exempt from import VAT. Gifts over £39 but under £135 attract import VAT but no customs duty. Customs duty on gifts kicks in only when the value goes above £135, the same threshold as ordinary goods.5GOV.UK. Duties and Import VAT on Gifts
To count as a gift, the package must be sent from one private individual to another, be for a specific occasion such as a birthday or Christmas, be for personal use only, and have no payment attached in the UK. The sender completes the customs declaration on the parcel, marks it as a gift, and states the value. If HMRC suspects the declaration understates the value or that the item is a commercial purchase in disguise, they can reassess the charges.
Reliefs You Might Qualify For
Moving to the UK
Relocating to the UK lets you bring personal belongings without paying customs duty or import VAT under Transfer of Residence relief. You must have lived outside the UK for at least 12 consecutive months before the move, and the belongings must have been in your possession for at least six months.6GOV.UK. Transfer of Residence to the UK The six-month rule is there to stop people buying new items abroad to avoid UK taxes.
Apply for approval before your goods ship. Complete a ToR1 form, receive a unique reference number from HMRC, then include that reference on your import declaration.7GOV.UK. Application for Transfer of Residence Relief (ToR1) Goods arriving without an approved reference get assessed for full duty and VAT, and sorting it out afterwards is harder than applying in advance.
Temporary Admission
Goods brought in on a temporary basis, such as professional equipment for an event or items sent for repair, can enter without duty or VAT if they are re-exported afterwards. You can usually keep them in the UK for up to 24 months.8GOV.UK. Import Goods to the UK Temporarily Prior authorisation from HMRC is required, and the goods must leave in the same condition apart from normal wear.
Where full relief is not available, partial relief may apply. Under partial relief you pay the full import VAT upfront but only 3% of the customs duty per month the goods remain in the UK.8GOV.UK. Import Goods to the UK Temporarily
Commercial Samples
Businesses importing product samples to show prospective buyers can claim relief from both duty and VAT, provided the samples are clearly identified as such before importation. There is no fixed value threshold; the goods must represent the products they promote and must be prepared so they cannot be used normally, for example by being slashed, perforated, or labelled “commercial sample” in permanent ink.9GOV.UK. Pay No Import Duty and VAT on Importing Commercial Samples Give-away promotional items and goods that work as normal products do not qualify.
Bringing Goods In Yourself
Arriving in the UK in person, rather than receiving a parcel, brings different thresholds. You can bring in goods worth up to £390 duty-free, or £270 if you arrive by private plane or boat. Alcohol and tobacco have separate quantity-based allowances instead of value limits.10GOV.UK. Bringing Goods Into the UK for Personal Use – Arriving in Great Britain
Paying the Bill
For most parcels arriving by post or courier, the carrier handles the customs process and bills you before releasing the item. Royal Mail, Parcelforce, FedEx, and other carriers each send a notification by post or email, with a breakdown of customs duty, import VAT, and the carrier’s own handling fee.
That handling fee surprises people. Royal Mail charges £8 for standard parcels, £12 for Parcelforce items, and £25 for goods valued over £900 that need a full customs declaration.11Royal Mail. Pay a Fee FedEx uses a tiered disbursement fee: £10.50 (or 30% of the duty and tax, whichever is higher) for charges under £43, a flat £12.90 for charges between £43 and £524, and 2.5% for charges above £524.12FedEx. Customs Duties and Taxes Guide
Royal Mail holds a parcel for 21 calendar days before returning it to sender.13Royal Mail. Help With Paying a Fee to Receive My Item Other carriers set their own deadlines. Payment is usually made through the carrier’s online portal, and for Royal Mail you can also pay at a post office branch. Ignore the notice and the parcel is returned or destroyed.
Challenging a Charge or Claiming a Refund
If a charge on a Royal Mail or Parcelforce parcel looks wrong, you pay it first to get the parcel, then submit Form BOR286 with the customs charge label, the sender’s declaration, and proof of value.14GOV.UK. BOR286 – Customs Duty and/or Import VAT Relating to Imports by Post Incomplete forms are rejected.
For goods that turn out to be defective or not what you ordered, you can reclaim the duty if you return or destroy them. Apply using form C&E1179 or the online service at least 48 hours before the goods are packed for re-export, within one year of the original duty notification.15GOV.UK. Refunds and Waivers on Customs Debt You cannot claim if you knew the goods were faulty when you bought them, or if you used them beyond what was needed to discover the problem.
If HMRC rejects a claim, you have 30 days from the decision letter to accept a review or appeal to the tax tribunal.16GOV.UK. Disagree With a Tax Decision or Penalty Missing that window means asking the tribunal for permission to file late.
Penalties for Getting It Wrong
HMRC uses a graduated system. Most first-time contraventions draw a warning letter rather than an immediate financial penalty, provided the error is not serious. A similar mistake within two years of that warning triggers penalties, starting at £250 and rising through £500 and £1,000 for repeat issues, with a maximum of £2,500 per offence for serious contraventions.17GOV.UK. Civil Penalties for Contraventions of Customs Law (Customs Notice 301) HMRC can skip the warning where undeclared duty exceeds £50,000, or apply the maximum where it exceeds £100,000.
Voluntarily disclosing an error in writing before HMRC finds it typically avoids a penalty, as long as you had no reason to think HMRC was already looking into the issue.17GOV.UK. Civil Penalties for Contraventions of Customs Law (Customs Notice 301) Beyond financial penalties, HMRC and Border Force can seize goods outright. Seized excise goods such as alcohol and tobacco are rarely returned, and prohibited items are never returned.18GOV.UK. What You Can Do if Things Are Seized by HMRC or Border Force
A Note on Northern Ireland
Northern Ireland sits in a distinct position under the Windsor Framework. Goods arriving from outside both the EU and the UK need customs declarations and may attract tariffs, as in Great Britain, but movements between Northern Ireland and the EU do not require export declarations, and EU customs rules apply in many contexts.19GOV.UK. Trading and Moving Goods in and out of Northern Ireland Northern Ireland traders sometimes navigate both UK and EU tariff schedules, which does not apply to businesses in England, Scotland, or Wales.