06/10/2016
Bringing a vehicle into the United Kingdom, whether it's a brand-new import, a pre-owned purchase from abroad, or even a vehicle you previously exported and are now reimporting, involves a specific set of rules and regulations. Understanding these requirements, particularly concerning vehicle tax and registration, is crucial to ensure a smooth and compliant process. Failing to navigate these complexities can lead to unexpected costs and administrative hurdles. This comprehensive guide aims to demystify the process, providing clarity on the key considerations for anyone looking to import a vehicle into the UK.
The landscape of vehicle taxation in the UK underwent significant changes on or after 1 April 2017, affecting how both newly registered and imported vehicles are taxed. These changes introduced new standard tax rates and revised first licence rates, primarily influenced by a vehicle's CO2 emissions and its list price or notional price. When importing a vehicle, it's paramount to understand how these updated regulations apply to your specific situation, as the implications can vary significantly depending on the vehicle's age, type, and value.
Key Vehicle Tax Changes from 1 April 2017
For vehicles registered for the first time on or after 1 April 2017, the system shifted. The most notable changes include:
- Introduction of new standard tax rates.
- First licence rates for new vehicles are now based on their CO2 emissions.
- The emissions list price or notional price of the vehicle must be provided to the DVLA when the vehicle is first registered.
These adjustments were designed to encourage the adoption of lower-emission vehicles, with higher emission and higher-value cars incurring greater tax liabilities. For importers, this means that even if a vehicle was purchased abroad, its UK tax treatment will align with these domestic regulations upon its first UK registration.
New Imported Vehicles: What You Need to Know
When importing a new car or certain motorhomes (specifically categories M1, M1SP, and M1G on the type approval certificate), the application of these new tax rules depends primarily on whether the vehicle has a CO2 emissions figure on its final build type approval certificate.
Vehicles with CO2 Emissions Figures
For new vehicles imported with a CO2 emissions figure, the initial taxation follows a specific structure based on these emissions. However, from the second time the vehicle is taxed, the rate will either be the standard rate or the standard rate plus an additional charge, depending on the vehicle's list price or notional price. It's crucial to obtain the correct list price from your dealer to accurately determine the applicable tax.
For Vehicles with a List Price of £40,000 and Under
If your new imported vehicle was first registered on or after 1 April 2017, and its list price or notional price is £40,000 or less, the annual standard rate of vehicle tax will be £140. For alternative fuel vehicles, this rate is slightly reduced to £130, while vehicles with zero emissions benefit from a £0 annual charge. This structure aims to provide a baseline tax for the majority of new vehicles falling within a standard price bracket.
For Vehicles with a List Price Exceeding £40,000
New imported vehicles with a list price or notional price exceeding £40,000 face a higher tax burden for the first five years. These vehicles will be charged the standard rate plus an additional rate of £310. This brings the total annual charge to £450. For alternative fuel vehicles in this category, the total is £440, and for zero-emission vehicles, it's £310 (as they still incur the additional rate despite zero emissions). After this five-year period, the vehicle tax will revert to the standard rate applicable at that time. This additional charge is a significant factor to consider when budgeting for the import of luxury or high-value vehicles.
Vehicles Without a CO2 Emissions Figure
Not all imported vehicles will come with a CO2 emissions figure on their final build type approval certificate. In such cases, these vehicles will continue to be taxed under the Private Light Goods (PLG) tax class, as they were prior to the 2017 changes. However, regardless of the presence of a CO2 figure, it is still mandatory to provide the list price or notional price of the vehicle when registering an imported vehicle with the DVLA.
Bringing in a Used Vehicle: Tax Implications
The rules for importing used vehicles also hinge on the 1 April 2017 threshold, specifically when the vehicle was first registered outside the UK. This date dictates whether the new tax rate scheme applies or if the vehicle continues to be taxed under the older system.
- If your used vehicle was first registered outside the UK on or after 1 April 2017, the new tax rate scheme will apply. This means it will be subject to the same standard rates and additional charges based on its original list price or notional price, similar to new imports.
- Conversely, if the vehicle was registered outside the UK before 1 April 2017, it will continue to be taxed as it would have been under the previous system.
A key consideration for used imports is the additional rate for vehicles with an original list price or notional price over £40,000. If the vehicle fell into this category when it was first registered abroad, the additional £310 per year will be added to the standard rate. This additional rate applies for either:
- A five-year period from the end of the first licence, if the vehicle is being imported and registered for the first time in the UK.
- Up to six years from the date of its first registration outside the UK, specifically when imported as a used vehicle but originally registered on or after 1 April 2017.
Understanding these timeframes is essential for budgeting the ongoing costs of your imported used vehicle.
| Vehicle Type/Category | First Licence Rate (Based on CO2) | Standard Rate (After First Year) | Additional Rate (If List Price > £40,000) | Total Annual Tax (After First Year, for >£40k) |
|---|---|---|---|---|
| New Imported Vehicle (M1, M1SP, M1G) with CO2 figure & List Price ≤ £40,000 | Based on CO2 emissions | £140 | N/A | N/A |
| New Imported Vehicle (M1, M1SP, M1G) with CO2 figure & List Price > £40,000 | Based on CO2 emissions | £140 | +£310 (for 5 years) | £450 (for 5 years, then £140) |
| New Imported Vehicle (M1, M1SP, M1G) without CO2 figure | PLG Tax Class | PLG Tax Class | N/A | N/A |
| Used Imported Vehicle (First Registered outside UK on/after 1 Apr 2017) & List Price ≤ £40,000 | N/A (already registered) | £140 | N/A | N/A |
| Used Imported Vehicle (First Registered outside UK on/after 1 Apr 2017) & List Price > £40,000 | N/A (already registered) | £140 | +£310 (for up to 6 years from first reg outside UK, or 5 years from first UK licence end) | £450 (for applicable period, then £140) |
| Alternative Fuel Vehicle (List Price ≤ £40,000) | Based on CO2 emissions | £130 | N/A | N/A |
| Alternative Fuel Vehicle (List Price > £40,000) | Based on CO2 emissions | £130 | +£310 (for 5 years) | £440 (for 5 years, then £130) |
| Zero Emission Vehicle (List Price ≤ £40,000) | £0 | £0 | N/A | N/A |
| Zero Emission Vehicle (List Price > £40,000) | £0 | £0 | +£310 (for 5 years) | £310 (for 5 years, then £0) |
Note: Rates are subject to change by government legislation. Always verify current rates with official sources.
Reimporting Your UK-Registered Vehicle
If you're bringing a vehicle back into the UK that was previously registered here and then exported to another country, there's a distinct re-registration process to follow. This is different from importing a vehicle that has never been registered in the UK before. The good news is that for reimported vehicles, you generally do not have to obtain additional vehicle approval, simplifying one aspect of the process.
The Re-registration Process
Before you can drive your reimported vehicle on UK roads, it must be insured. Once insured, the next critical step is to get the vehicle an MOT. After it has successfully passed its MOT, you can proceed with registering and taxing the vehicle with the DVLA. A positive point for reimported vehicles is that you will not need to pay the standard £55 registration fee.
When you register a reimported vehicle, you must send the following original documents to the DVLA:
- Any evidence demonstrating changes made to the vehicle, such as an invoice detailing colour or engine modifications.
- The original foreign registration certificate. It's important to note that you will not get this document back, so ensure you have copies for your records if needed.
If, for any reason, you do not possess the original foreign registration certificate, you must send a letter to the DVLA explaining why it is unavailable. Under no circumstances should you send photocopies or faxed copies of documents; only original paperwork will be accepted.
It's also vital to check if your vehicle has been significantly damaged, rebuilt, or modified since its original UK registration. In such cases, there might be additional checks or specific requirements to ensure it can still be legally registered and used on UK roads. It's wise to verify this before undertaking the reimportation process.
When Your Reimported Vehicle is Off the Road (SORN)
Even if you reimport your vehicle but do not intend to get an MOT immediately, or if you don't plan to tax it because, for example, you intend to sell it or it's not yet roadworthy, you still have obligations. In such scenarios, you need to make a Statutory Off Road Notification (SORN). Making a SORN declares to the DVLA that your vehicle is not being used or kept on a public road.
Crucially, even if you make a SORN, you still need to register the reimported vehicle. Upon successful registration, you will receive a vehicle log book (V5C), which is an essential document for ownership and future transactions.
Do You Pay VAT on Temporarily Imported Vehicles?
The information provided for this article does not contain details regarding Value Added Tax (VAT) for temporarily imported vehicles. Therefore, we cannot provide specific guidance on this matter. For definitive information on VAT implications for vehicle imports, especially temporary ones, it is advisable to consult official government sources or a qualified customs expert.
Key Takeaways for Importers
- Vehicle Tax Rates changed significantly from 1 April 2017, impacting both new and used imports.
- The list price or notional price of your vehicle is crucial for determining its tax band, especially for vehicles over £40,000.
- New vehicles with a CO2 emissions figure will have their first year's tax based on these emissions.
- Used vehicles registered abroad before 1 April 2017 are taxed under the old system; those registered after this date fall under the new rules.
- Reimporting a previously UK-registered vehicle requires re-registration and an MOT, but typically no vehicle approval.
- Always ensure your vehicle is insured before driving it on UK roads.
- If your vehicle is off the road, a SORN is mandatory, but registration is still required.
Frequently Asked Questions (FAQs)
- What is the primary factor determining vehicle tax for new imported vehicles?
- For new imported vehicles registered on or after 1 April 2017, the primary factors are the vehicle's CO2 emissions for the first year's tax, and then its list price or notional price for subsequent years, particularly if it exceeds £40,000.
- How does the £40,000 list price threshold affect vehicle tax?
- If a new or used imported vehicle (registered on or after 1 April 2017) has a list price or notional price exceeding £40,000, it incurs an additional annual rate of £310 on top of the standard rate for a period of five years (for new imports) or up to six years (for used imports).
- Do I need a CO2 emissions figure for all imported vehicles?
- New imported vehicles in categories M1, M1SP, and M1G will apply the new tax rules if they have a CO2 emissions figure. Vehicles without this figure will be taxed as Private Light Goods (PLG). Regardless, the list price or notional price must always be provided.
- What if I'm reimporting a vehicle I previously exported from the UK?
- You must re-register the vehicle with the DVLA, get an MOT, and ensure it's insured. You won't need to pay the £55 registration fee, and typically, vehicle approval isn't required. You'll need to provide the original foreign registration certificate and evidence of any changes.
- What documents do I need to re-register a reimported vehicle?
- You must send the original foreign registration certificate (which won't be returned) and evidence of any modifications (e.g., invoices for colour or engine changes). If you don't have the certificate, send a letter explaining why. Do not send photocopies or faxes.
- Can I make a SORN for my reimported vehicle?
- Yes, if your reimported vehicle is off the road and not being used or kept on a public road, you must make a Statutory Off Road Notification (SORN). However, you still need to register the vehicle with the DVLA to receive your V5C log book.
- Where can I find the list price for an imported vehicle?
- To find the accurate list price for a vehicle, it is recommended to contact your dealer or the vehicle manufacturer, who should be able to provide this information.
- Does this article cover VAT for temporarily imported vehicles?
- No, the provided information does not cover VAT implications for temporarily imported vehicles. You should consult official government resources or a customs expert for this specific detail.
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