Personal Import Tax

[Nightmare]

Hi All,

A friend is intending to import a dodge viper from the US. He has owned the car 6 months (has lived there for 2 years) and has a UK address (his own) where it's going to.

Anyone know what personal importat tax is likely to run on this, or any other charges he should watch out for?

cheers
Night

[plotloss]

VAT and Import duty I think.

22.5%...

[nobbybombshell]

I bought two cars back in March.

Cars imported from the USA are normally liable to customs duty of 10%, plus VAT at the standard rate of 17.5%. However, if a car is classified as a collector's item of historical interest, under commodity code 970500 00 00, it will be free of duty and liable to only 5% VAT.


Only other charges are for the shipping and insurance. make sure he gets the better CIF insurance.

[viper_larry]

One of our members imported a Viper last year and wrote a short article about how to do it - might provide some useful info?

www.ukviperclub.org/page21.html

[LRdriver II]

But in some countrys, a car is considered part of the household when it comes to moving house/home/country

Not quite the same as "importing" a car in the normal sense.. so you might want to check

[pdV6]

Yeah - isn't there a time limit of the order of a year, whereby if you've owned & used the car abroad for that time you can bring it back tax-free (or at least at a reduced rate)?

{edited to add:}
The DVLA's website helpfully only talks about new cars (emphasis on "new", because it has to satisfy certain criteria to be considered "new")

DVLA said:

For further advice on import duty and tax contact HM Customs & Excise Advice Service on 0845 0109000.

>> Edited by pdV6 on Tuesday 13th July 13:09

[aww999]

I don't suppose anyone could shed some more light on what cars may qualify for the lower rate of duty? I'm tempted by an early 70's camaro or charger . . .

[pdV6]

DVLA said:

For further advice on import duty and tax contact HM Customs & Excise Advice Service on 0845 0109000.

>> Edited by pdV6 on Tuesday 13th July 13:14

[nobbybombshell]

aww999 said:

I don't suppose anyone could shed some more light on what cars may qualify for the lower rate of duty? I'm tempted by an early 70's camaro or charger . . .

When i imported my Mustangs earlier this year, a 66 and a 67, Customs confirmed thay would be free of duty because thay were over 30 years old.

I also got a reduced vat rate of 5%.

The criteria:

1) all vehicles manufactured before 1950, even if not in running order,
2) vehicles in their original state, without substantial changes to chassis, steering etc., at least 30 years old and of a model or type no longer in production,
3) vehicles which have been used in the course of an historic event and
4) motor racing vehicles which have scored success in prestigious races.

I would advise you to check with the Tariff Classification Helpline 0n 01702 366077 to see if a particular vehicle satisfies the criteria. It may be necessary to get a written ruling from them, called a Binding Tariff Information, that a particular car is proper to code 9705 etc., and therefore will get the reduced rates.




>> Edited by nobbybombshell on Tuesday 13th July 13:25

[MikeyT]

nobbybombshell said:

When i imported my Mustangs earlier this year, a 66 and a 67,

Pics Nobby ... ??

[Kinky]

Dead useful site here : www.import-car.info/

[nobbybombshell]

MikeyT said:

nobbybombshell said: When i imported my Mustangs earlier this year, a 66 and a 67, Pics Nobby ... ??

Hold on a sec, just rustle em up............

[nobbybombshell]

MikeyT said:

nobbybombshell said: When i imported my Mustangs earlier this year, a 66 and a 67, Pics Nobby ... ??

There ya go.









The one on the trailer is being restored at the moment and will be ready for August.

>> Edited by nobbybombshell on Tuesday 13th July 13:37

[JonRB]

If in any doubt, call HMC&E. Whenever we've dealt with them they've been extremely helpful and easy to talk to.

[Nightmare]

god this is a knowlegable lot - thanks you all kindly, you've been marvellous

Obvious question though....lets assume its 20% after its all worked out...20% of what precisely? His valuation, their valuation, random persons valuation?

I reckon my car is worth X. The insurers no doubt reckon X/2, but I could probably argue X+ to some thickie....so who decides??

cos I'll give him a fiver for his viper otherwise and pay 22% import on that....!

>> Edited by Nightmare on Tuesday 13th July 14:20

[angusfaldo]

Nightmare said:

god this is a knowlegable lot - thanks you all kindly, you've been marvellous Obvious question though....lets assume its 20% after its all worked out...20% of what precisely? His valuation, their valuation, random persons valuation? I reckon my car is worth X. The insurers no doubt reckon X/2, but I could probably argue X+ to some thickie....so who decides?? cos I'll give him a fiver for his viper otherwise and pay 22% import on that....! >> Edited by Nightmare on Tuesday 13th July 14:20

Customs duty and import VAT are charged on the transaction price - normally the price paid for the item adjusted to CIF (which just means you have to add in the price of insurance and freight to the border of the EU). However it may be the case that your transaction price is not considered to be arms' length - in other words it is affected by a relationship you may have with the buyer, or some other consideration for which a value can be established. In such cases you have to justify the value you declare using a value method other than the transaction price, such as by reference to an identical or similar item, or by calculating a price from the bottom up, or resell price back.

So, if the price you paid is a genuine commercial price it should be perfectly acceptable as a customs value. But don't forget that the duty is charged first, then added to the value of your import, and then VAT is charged on the duty inclusive price. Tax on tax - don't you just love it?

[g_attrill]

It will also need an SVA. I think for Viper's the headlamps are quite tricky to convert, but there are plenty in the country and I'm sure the chaps from the UK Viper Club will be delighted to help.

Also see the following links:

www.dft.gov.uk/stellent/groups/dft_roads/documents/page/dft_roads_506867.hcsp

BTI can apply to newer vehicles (DeLorean's qualify due to their scarcity) but not to Vipers unfortunately.

However if he has definately owned it for over six months it will qualify as a personal import and (I think) be exempt from duty and VAT. He MUST also keep documentary proof of use though - insurance and servicing receipts might be ok for this, but keep as much as possible.

He must also keep it for a year after importing, but after that it should be worth much more over here because of the duty/VAT saving.

Gareth

[mikef]

If he's lived in the US for over a year (and can prove that - utility bills etc) and has owned the vehicle for six months (and can prove that - bill of sale, title, insurance) and is moving home from the US to the UK, it should be possible bring it in free of import duty and VAT. This can happen up to one year before or one year after the move back to the UK

For the practical (non-tax) aspcts, I suggest having a dig around the Dept of Transport web site to look for booklet P15 'How to Imprt a Vehicle into Great Britain'

Mike

[Hardcore2000]

mmmmm, what if i import it into portugal say and drive it into country like a day tripper. big fat zero VAT and DUTY. Would be sooo easy

[Mr E]

nobbybombshell said:

There ya go.

Very nice sir. Very nice indeed.