What it costs
Know the tax before the car moves.
Import duty and VAT are usually the biggest part of the bill, and they follow simple rules. Put your numbers in below and see exactly where the money goes.
Your estimate
- Car, in pounds
- £0
- Shipping and insurance
- £0
- Customs value
- £0
- Import duty
- £0
- Import VAT
- £0
- Tax to pay
- £0
A guide, not a tax ruling. HMRC decides the final figure on the day, and it does not include our fees or UK-side costs like testing and registration. Your quote covers those.
Get a quoteHow the tax works
HMRC does not charge tax on the price of the car alone. It charges on the customs value, which is what you paid plus the cost of getting the car to the UK. For a car from the Gulf that means the purchase price, the shipping and the marine insurance.
Import duty is 10% of that customs value. Import VAT is then 20% of the customs value plus the duty. Yes, VAT on top of the duty. It is the line that surprises people most, so it is worth knowing about before you budget.
| Your situation | Duty | Import VAT |
|---|---|---|
| Most cars | 10% | 20%, including on the duty |
| Classics over 30 years old | None | 5% |
| Moving home with Transfer of Residence relief | None | None |
Where the car was built matters
Duty is based on where the car was made, not where you bought it. A Land Cruiser from Dubai is a Japanese car as far as HMRC is concerned, and a Mustang from Doha is an American one.
Trade deals can sometimes reduce duty for cars built in a country the UK has an agreement with, but only when the origin can be properly evidenced, and that is not always possible with a used car. We look at this for every car we quote on, so you are not left guessing.
Moving home: Transfer of Residence
If you are coming back to live in the UK, Transfer of Residence relief can remove the duty and VAT altogether. You need to have lived outside the UK for more than 12 months and owned and used the car for at least 6 months, and you agree not to sell it for the first 12 months.
You apply to HMRC before the car arrives. Our moving home page has a quick checker and walks through the application.
Everything else in the bill
The tax is only part of it. A full import from the Gulf also covers:
- Collection in the Gulf and export paperwork
- Your space in a shared container, or a container of your own
- Marine insurance while it travels
- Unloading and UK customs clearance
- Headlight, speedometer and fog light conversions
- An IVA test or an MOT
- DVLA registration and UK number plates
- Collection from us, or delivery to your door
Every car is different, so we do not publish a price list. Your quote sets out each of these for your car, so there are no surprises later.
Questions about cost
Is import duty charged on the price of the car or on more than that?
On more than that. Duty and VAT are worked out on the customs value, which is the price of the car plus the cost of getting it to the UK, including shipping and insurance.
Do I pay VAT on the duty?
Yes. Import VAT is charged on the customs value plus the duty. It catches people out, which is why the calculator shows each line separately.
Does a car bought in Dubai pay less duty because the UAE has a trade deal?
Duty depends on where the car was built, not where it was bought or shipped from. Most Gulf cars were built in Japan, Europe or North America. Trade deals can sometimes reduce duty for cars built in a country the UK has an agreement with, but only when the origin can be properly evidenced. We check this for your car.
What do I pay if I am moving home?
If HMRC approves Transfer of Residence relief, nothing in duty or import VAT. You need to have lived outside the UK for more than 12 months, owned and used the car for at least 6 months, and you cannot sell it for the first 12 months after it arrives.
Ready when you are.
Tell us about the car and where it is. A real person at My Car Import builds your quote around your car, and there is no obligation to go ahead.