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Import Duties: Tax Allowances

Answer

Tax Update 2026 saw the announcement of a number of measures to simplify, modernise, and increase fairness in the tax and customs system. This included measures to support high streets such as the acceleration of reforms to the customs treatment of low value imports and the consultation on the extension of the VAT online marketplace liability.

The customs treatment of low value imports will support a business environment of fair competition between high street and online retailers, and monitoring and evaluation of the policy will be part of final policy design considerations.

The consultation on the extension of current rules for VAT online marketplace liability is only seeking views at this stage. Any future policy decision on reform will be taken in the round and announced at the Budget in the usual way, including consideration of impacts on consumer prices.

Bringing down inflation and easing the cost of living remains a priority for this Government. Following reforms to the customs treatment of low value imports, UK consumers will still have access to a range of affordable goods –means that a t-shirt from an online retailer will pay the same duties and face equivalent controls as one imported in bulk and sold by a high street retailer.

It is in the national interest that all businesses, regardless of how they sell goods to UK consumers, pay the right tariffs to access our advanced and dynamic market and these steps will ensure that. Inflation assessments indicates that this clampdown would have a negligible impact on headline inflation.

Secondary information

Type

Written question

Reference

16823

Session

2026-27

Grouped for answer

Yes

Subjects

Consumers Internet Import duties Prices Reform Tax allowances Retail trade

Link

View this Written question on www.parliament.uk