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The simple answer to this question is yes! You are able to claim relief on Customs Duty and VAT if you’re importing capital goods. In this article we explain what that means, and how the process works.
Capital goods are the physical assets your business uses to produce goods and services for customers. You might also hear them described as fixed assets. They’re an essential part of a business’s operations, so if you decide to move a business to the UK from another country then you might bring your capital goods with you.
Moving goods across the UK border is usually subject to customs duty and import tax, but you can get relief on this if you’re transferring your business to the UK from overseas and importing the business’s capital goods and equipment as part of the move.
If you are eligible, you will be able to benefit from relief on capital goods and equipment, such as:
VAT and Customs Duty relief isn’t available for:
Let’s start by covering who fits under the umbrella of eligibility claiming relief on capital goods imports. Because it’s a complex area, we’ve put it in list form to make it easier to follow. You are eligible to pay less Customs Duty and VAT if you are transferring a business to the UK which:
When it comes to Customs Duty, there are few more boxes that you will need to be able to tick in order to claim your relief. These requirements say that the eligible capital goods must:
The last two points do have some flexibility if there are extenuating circumstances which makes them impossible. If you think this might be the case for you, you can contact the National Imports Relief Unit.
If you are looking to claim relief on import VAT, your business must also:
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