Guide · Updated October 2026
Import Duty and VAT on a Car Brought into the UK, with Worked Examples
A car imported into Great Britain from outside the UK usually pays 10% customs duty and then 20% VAT, both worked out on the value of the car plus the cost of shipping it here. On a US$20,000 car with US$1,500 of shipping that is about US$6,900. Qualifying classics over 30 years old pay no duty and an effective 5% VAT, and people moving to the UK can often import their own car with no duty or VAT under Transfer of Residence relief.
Customs duty
Usually 10% for cars
VAT
20%, on value plus shipping plus duty
Historic vehicles
No duty, effective 5% VAT
Moving to the UK
Transfer of Residence: often nothing to pay
Returning UK car
Returned Goods Relief may apply
Paid
Before the vehicle can be registered
How is it worked out?
Duty is charged on the customs value: the price you paid (or the current value) plus the cost of shipping and insurance to the UK. VAT is then charged on the customs value plus the duty. That is why the total is about 32% of the value plus shipping, not 30%.
- Car value
- US$20,000
- Shipping and insurance to the UK
- US$1,500
- Customs value
- US$21,500
- Duty at 10%
- US$2,150
- VAT at 20% of US$23,650
- US$4,730
- Total duty and VAT
- US$6,880
Figures are converted to pounds at HMRC's exchange rate for the month of import. Typical RORO shipping from the US East Coast to the UK is US$1,405–1,580 for a car, from our quotes in the last 90 days.
When is there no duty or VAT to pay?
- Transfer of Residence
- You lived outside the UK for at least 12 months, owned and used the car for at least 6 months, and are moving here. Apply on form ToR1 before the car arrives
- Returned Goods Relief
- A car you owned in the UK, took abroad and are bringing back, not upgraded to increase its value; claimed with form C179B
- Temporary import
- Visitors who live abroad can use their own car here for up to 6 months in any 12 without paying
Classic cars: no duty and 5% VAT
A vehicle at least 30 years old, of a model no longer made, and in its original condition can be classed as a collectors' item. It then pays no duty and an effective VAT rate of 5%. On a US$30,000 classic with US$1,500 shipping that is about US$1,575 instead of about US$10,080.
Is the rate always 10%?
No. Cars from countries with a UK trade agreement can pay 0% duty if they have valid proof of preferential origin, which is common for cars made in the EU and some other countries. Vans, trucks and motorcycles have their own rates. We check the rate for your vehicle and origin when we quote.
How is it paid?
The import declaration is made when the vehicle arrives, through our broker, a local agent we introduce, or your own, and duty and VAT are paid before the vehicle is released. VAT-registered businesses can reclaim the VAT on their VAT return. You then make the NOVA declaration and can register the vehicle.
Frequently asked questions
How much import duty do you pay on a car into the UK?
Usually 10% customs duty and then 20% VAT, both on the value plus shipping. That comes to about 32% in total.
Do I pay VAT on a car I import when moving to the UK?
Not if you qualify for Transfer of Residence relief: 12 months living abroad, 6 months owning and using the car, and a ToR1 approval before it arrives.
Is there import duty on classic cars?
Not on qualifying historic vehicles over 30 years old in original condition: they pay no duty and an effective 5% VAT.
Is shipping included in the value for import duty?
Yes. Duty and VAT are worked out on the value of the car plus the shipping and insurance to the UK.
Do I pay duty on a car from the EU?
Cars with valid proof of preferential origin can be duty-free, but VAT is still due on most imports unless a relief applies.
Official sources
- GOV.UK: Paying VAT and customs duty on an imported vehicle
- GOV.UK: Making an import declaration and claiming relief
- GOV.UK: Transfer of Residence to Great Britain
- GOV.UK: Returned Goods Relief
- GOV.UK: How to value goods for import VAT
This guide summarises the rules as published in October 2026. Rules change; we confirm what applies to your vehicle when we quote.
Related routes and guides
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