Capital goods are part of your business operations. These goods are used by your business to produce other goods that are up for sale. If your business overseas is planned to be transferred to the UK, your capital goods should be shipped to the UK, for which you are eligible for paying less customs duty and VAT.

1. Customs Duty & VAT to
Import Capital Goods in UK
Morgan Reach

2. Capital goods
• Capital goods are part of your business
operations.
• These goods are used by your business to
produce other goods that are up for sale.
• If your business overseas is planned to be
transferred to the UK, your capital goods
should be shipped to the UK.
https://morganreach.com

3. Paying Less Duty & VAT
• You are eligible for paying less customs duty
and VAT if you are transferring a business to
the UK that:
– Has no operations whatsoever outside the EU.
– New operations carried out within the EU or UK.
– Is a Limited Company or a non-profit organization
– Starting to set up new operations in collaboration
with third-party entities
– Is branded under the banner of “liberal profession.”
https://morganreach.com

4. Benefits
• If you are eligible, you’ll be relieved on capital goods
and equipment you use for your business, including
the following assets:
– Transportation required for transferring your capital
goods;
– Livestock;
– Tools used for the business, pieces of machinery, and
office equipment;
– Technological tools such as computers.
https://morganreach.com

5. Off-Limits
• VAT and Customs Duty relief does not cover the
following:
– Means of transportation of the things not used in your
business;
– Any type of goods for human and animal consumption
– Raw materials, semi-finished products, horticultural
products for sale like seeds, plants, shrubs, and fuel
– Livestock owned by a dealer and not the business
itself.
https://morganreach.com

6. Eligibility for Customs Duty Relief
• In accessing the perks of customs duty relief, eligible
capital goods must:
– Be owned and used by the business for at least 12
months before transferring to the UK;
– Be used as the same function they offer before
transferring to the UK;
– Be reasonable and relative to the size and nature of
your business;
– Be imported from where they were previously within
one year your business stopped operating.
https://morganreach.com

7. Eligibility for VAT Relief
• To be eligible for VAT relief, your business must:
– Be involved in the production of taxable supplies;
– Have or expecting to have a turnover of taxable which
according to the “Accountancy.co,” “exceeds the UK
requirements for VAT registration, or will exceed it within
the next 30 days. The current threshold is £85,000;”
– Register for VAT.
• Records: Ownership, All National Imports Relief Unit
acknowledgement letters, Receipts, Bill, Insurance
documents and so on.
https://morganreach.com

8. Reach Us
BIRMINGHAM
136 Hagley Road
Edgbaston
Birmingham
B16 9NX
LONDON
239 Kensington
High Street, Fl. 1
Kensington, London
W8 6SA
MANCHESTER
82 King Street
Manchester
Lancashire
M2 4WQ