United Kingdom to Remove £135 Customs Duty Exemption for Low-Value Imports

The UK Government has confirmed in Budget 2025open_in_new that the £135 customs duty threshold for low-value imports will be abolished, with full implementation planned by March 2029.
On 26 November 2025, the Chancellor formally announced the removal of the long-standing customs duty relief for commercial consignments valued at £135 or below. The reform will apply to all qualifying imports that currently benefit from the exemption.

What Will Change

The Government has opened a public consultationopen_in_new outlining the new compliance framework. Key elements include:

• Item-level data requirements for customs declarations
• Shift of compliance responsibility to online marketplaces and sellers
• Potential UK fiscal representative obligations for non-established businesses
• Integration of customs duty collection with VAT processes
• Replacement of the existing BIRDS model with a new Low Value Import (LVI) customs system designed for high-volume flows

Implementation and oversight fall under HM Revenue and Customs, which will define the operational and technical specifications.

Why This Reform Matters

The removal of the £135 threshold is intended to:

• Protect government revenue
• Reduce undervaluation and misdeclaration risks
• Ensure fair competition for domestic retailers
• Modernise the UK’s customs framework

The move also reflects broader international trends. The European Union is advancing similar reformsopen_in_new under VAT in the Digital Age, which includes abolishing the €150 de minimis threshold, while the United States has tightenedopen_in_new its $800 exemption rules.

Consultation Timeline

The consultation is currently open and will close on 6 March 2026. Further legislative and technical details are expected following stakeholder feedback.