If you are moving your home to the UK, Transfer of Residence relief can let you bring your car in with 0% customs duty and 0% VAT. It exists so that people relocating are not taxed on the possessions they already own and are simply bringing with them. It is one of the few ways to import a car with no import tax at all, but it comes with firm conditions, and HMRC checks them.
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What the relief does
Transfer of Residence relief removes both taxes on a car you bring when you move to the UK. Instead of up to 10% duty and 20% VAT, you pay nothing, because you are not importing the car as a purchase, you are moving your own belongings to your new home.
It is the most generous outcome available when importing a car, which is exactly why HMRC sets clear conditions and expects them to be met.
It is not a loophole. It is relief for people genuinely moving their life to the UK, and it is judged on that basis.
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The relief is for people relocating their normal home to the UK, whether returning after time abroad or moving here for the first time. The car has to be your own, something you owned and used before the move, not something bought to sell on.
HMRC's conditions
The exact requirements are set by HMRC, but the shape of them is consistent, and they are the points to get right.
- You are moving your normal place of residence to the UK.
- You have lived outside the UK for a continuous period, typically at least 12 months.
- You owned and used the car abroad for a set period before the move, usually at least 6 months.
- You bring the car within a set time of moving.
- You keep the car, and do not sell or dispose of it, for a period after import, usually 12 months.
The relief is not just about getting the car in tax free. You have to keep it afterwards. Sell it too soon and the relief can be withdrawn, with the duty and VAT then becoming payable.
How to claim
The claim is made to HMRC as part of moving your belongings to the UK. You apply for the relief, and if it is granted you receive confirmation that lets the car be brought in without the duty and VAT.
The claim needs to line up with the rest of the import: the customs side, the arrival notification and the registration all still happen, but with the tax relieved rather than paid. Because the relief has to be in place at the right moment, the timing matters, and a claim made late or out of order causes problems.
Not sure if you qualify?
Tell us about your move and your car, and we will tell you whether Transfer of Residence relief applies before you commit. Over 1,500 vehicles cleared since Brexit.
Get my free relief checkThe rules after you arrive
Once the car is in under the relief, the obligations continue. You are generally expected to keep the car for a period, commonly 12 months, and not sell it during that time. The relief is granted on the basis that this is your car, brought as part of your move, and disposing of it quickly undercuts that basis.
If your situation does not fit Transfer of Residence, there may be another route. We cover the full set in our guide to when you are exempt from paying VAT.
Moving to the UK with your car?
We handle the relief claim alongside the customs and HMRC side, and we prepare every DVLA form, you just sign and post, so your car arrives correctly and tax free where it qualifies.
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