HMRC charges for importing a Corvette from outside the EU

Woodsy99

CCCUK Member
I understand that 10% duty is payable and then 20% VAT. What I am struggling to find out is whether the 20% VAT is just applied to the duty element or if is a payable on the whole amount, e.g. car cost + duty
Would appreciate any advice anyone can give
Thanks, Nick
 
M

Martinshort

Guest
I understand that 10% duty is payable and then 20% VAT. What I am struggling to find out is whether the 20% VAT is just applied to the duty element or if is a payable on the whole amount, e.g. car cost + duty
Would appreciate any advice anyone can give
Thanks, Nick
What year is the car being imported
 

Chevrolet

CCCUK Member
Nick. Guess you are still thinking about the 2008 up LS3 C6 manual Convertible? "Outside the EU" is a lot of places, but presumably you mean the US? Find something over there on the web you like the look of, and put it into the ShipmyCar online quote system to see how the costs stack up?


e.g. On a US C7 in April last year:


As you can see in the above thread , might be worth talking to Keith Beschi at Eurovettes about sourcing a US car. Hope that helps?
 
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Woodsy99

CCCUK Member
I’m in the UAE for the next month or so and there are a number of C6’s and 7‘s available - some a quite attractive prices which are either us spec cars with MPH speedos or UAE spec with kph speedos.

I’m trying to get to the bottom of the maths so see if it’s actually worthwhile and all I now need is to find out whether the 20% vat charged by HMRC purely applies to the import duty charged at point of entry to the UK or whether it is applied to the cost of the vehicle plus transport costs to the UK plus the import duty.
So, does anyone know the answer to this as it significantly impacts the overall costs?

Incidentally New C8’s are being delivered to the UAE from June and the main dealer base price is AED 395,000 ( GBP 84,042) for the targa and AED 405,000 (GBP 86,170)for the convertible
 

Alben78

Well-known user
Afraid it’s the total cost of the landed car so it’s purchase cost, import cost and duty. Plus, in theory at least, anything else in the car at the time of import just in case you considered shipping extra bits in at the same time. That’s assuming they are still there when the vehicle arrives at the uk destination port....
 

Jack Cooper

Well-known user
This is probably academic, but it used to be the case that if you had owned the vehicle for a year or more in the overseas location, and you kept the car in the UK for 2 more years (or re-exported it), then you could import it duty-free.
I did this back in the late '70s with a Datsun 260Z, which cost 'peanuts' (compared with the UK list price) in Dubai (I was actually living in Ras Al Khaimah) and the shipping costs to the UK were very low (In those days, loads of ships were arriving in the UAE full of general cargo but returning to UK with very little, so the shipping Cos. were pleased to bring back anything they could get their hands on).
It doesn't sound as though your situation would benefit from this, unless you 'come and go' over more than a year, buy a C7 on your first visit, and store it for a year.
Another factor (then) was that the used-car market was virtually non-existent; everyone was buying new cars, so rather than 'giving away' a
nice machine, it made sense to ship it back to the UK. Is it still like that now?
Good luck with your Corvette hunt, whatever you do!
J.C. (1911)
 

Woodsy99

CCCUK Member
Thanks Jack And it seems that shipping back to the UK from the UAE these days is only a financially realistic proposition if you are classed as a returning resident under HMRC rules which mean that you have to prove that you have lived continuously in the UAE for 12 months and owned the car for a least 6 months and used it on the road With evidence of mileage covered.

As an example I have found a 2017 14,000 mile C7 for the equivalent of GBP 30K at the current exchange rate, but by the time HMRC charges and all other costs are factored in, it rises to nearly GBP 44,300 all in, so not really worth all the hassle!

On the other hand, for a returning UK resident, the all up cost excluding HMRC charges would be around GBP 34.7K - a far more attractive proposition.......
 

Jack Cooper

Well-known user
The current regs seem much as they used to be, then Woodsy.
I would guess it's probably a good time to negotiate a cash purchase in the UK...… economy taking a dive (coronavirus etc.).
J.C. (1911)
 
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