Can you be charged import duty twice?

[PeterCrespin]

In 1993 SNGB imported a 1966 2+2 project from America, which they subsequently sold to someone in Stockport from whom I bought it in 2003. I have the original stamped & signed ‘V something’ form, confirming duty was paid, plus receipts for both sales and original title etc.

In 2018 I had it shipped to my current home in the USA, where work is nearing completion.

When finished, if I were to move back to the UK, or wish to take the completed car over, would I be charged import tax again?

[abowie]

I'm sure that you would.

They will argue that each importation is a separate event.

[MarekH]

If it is UK registered, then it isn't being imported. I would have thought they might want to argue that the added work component has not been correctly assessed because you haven't paid VAT on that.

kind regards
Marek

[tinworm]

Have a look on the government website there is a lot of info. As far as I am aware you would pay on a first import - but the status of the car should be 'British returned goods ' after that - so no further payment - but don't quote me...

Barrie

[christopher storey]

I believe that it will be free of duty on 2nd importation. The situation is analogous in many ways to the duty free export scheme that was operated when the cars were new. There, provided the car was declared as an export and was in fact removed from the UK within, IIRC, 6 months , no purchase tax ( as it was in those days ) was payable. However, if the car was later re-imported , then purchase tax would be payable . However, if the car was then re-exported, you would not get your purchase tax back, but nor would you have to pay it again if you later brought the car, yet again, to the UK.

[PeterCrespin]

Thanks chaps. It’s not road-ready so not UK registered. My three motorbikes are still UK registered so the same owner British Returned Goods sounds likely and would make sense for the car whose paperwork hasn’t changed.

I do see the logic of charging a higher levy for a now more valuable item, and that would obviously apply if it re-crossed the Atlantic in the normal course of someone buying it from me here and importing it like SNGB did originally. Duty would be assessed on today’s value, whatever it was in 1993. Waving someone else’s VAT paid certificate from the car’s previous history presumably wouldn’t count for exemption.

But if the owner just takes his chattels in and out with no transaction involved it would be no different to me moving my ‘stuff’ around but would not expect to be charged tax on something I didn’t buy abroad?

[TurboScab]

But if the owner just takes his chattels in and out with no transaction involved it would be no different to me moving my ‘stuff’ around but would not expect to be charged tax on something I didn’t buy abroad?

You might think that was a fair and reasonable expectation - but it may not be right! A couple of cautionary tales of returning expats who were caught out by Brexit

https://www.bailii.org/uk/cases/UKFTT/T ... 08333.html
https://www.bailii.org/uk/cases/UKFTT/T ... 08416.html

You might be entitled to either (or both) Transfer of Residence Relief or Returned Goods Relief, which seem to be different Schemes governed by different provisions.

[nichmoss]

I'm no expert in custom duty but, I have customers in various countries. I'm a watchmaker and repair/restore vintage watches.

When overseas customers send me watches, I ask them to declare the full value of the watch but mark it as repair and return. I don't expect to pay import duty or VAT but sometimes I have to - I can claim it back when I return the watch.

When I return the watch, the customs declaration is essentially the invoice for the work I performed (the value added) and my customer expects to pay the equivalent of VAT in whichever country they are, purely based on the value of my work - I include a copy of the invoice with the declaration. I insure those watches for the watch value and not just my work.

For me, declare the invoices for the work in USA and include copies of those invoices. Expect to pay VAT on the total of those invoices.

Good luck, Chris

[PeterCrespin]

That makes sense Chris, thanks. I've only got invoices for the stuff I've farmed out, which is the rear bodywork. and I paid North Carolina purchase tax on that although I'm a Maryland resident. The rest is DIY and all US taxes were paid as normal on parts, engine machining, materials etc. same as UK taxes when it was in the UK. I'm not in the car bizz.

Thanks to all, I'll see what happens (unless there's a tax & duty expert who can give chapter and verse).

[UK Muppet]

Hi Peter,
I would contact Customs first of all to get a definite answer on whether you can be charged duty more than once. They have always been very helpful when I have made enquiries. However, as it is a historic vehicle (more than 40 years old) under a normal import (you just bought the car in the US and are shipping it to the UK) you would not pay import duty but you would pay VAT at 5% on the price of the car plus shipping costs. So the total amount if you did get charged twice is not a great deal. That is all I have ever been charged on all the cars I have imported from the USA. Hope this helps.
Regards
Tony
69 S2 2+2

[Herzeg]

Peter

I agree to speak to customs first. There is an email address on the UK government website
ecsm.nchcars@hmrc.gov.uk
There's also a form available there for reclaiming Duty and/or VAT on re-imported cars. It's called C1314 and it mentions three years, so it could be the time limit for doing it. If the dues were paid originally and you fit their criteria then it looks like you may have to pay and then re-claim.
I'm not an expert but I work with customs clearances and understand a bit of their system. Their website is quite easy to understand https://www.gov.uk/importing-vehicles-i ... lling-hmrc

Good luck
John