How to apply for ToR relief and avoid UK import duties

If you are moving to the UK from abroad and bringing personal belongings from another country, you may be eligible for Transfer of Residence Relief (ToR). ToR allows you to import personal belongings to the UK tax-free.

What is transfer of residence relief (ToR)?

ToR enables overseas individuals who decide to make the UK their main home to claim relief from VAT, import and customs duties when importing their personal possessions into the UK.

When is Transfer of Residence relief available?

The relief is designed for individuals who intend to make the UK their usual place of residence, i.e. the UK becomes their main home.

The relief is only available to ‘living persons’ and is not available to trusts, companies, corporations, associations, groups or organisations.

ToR is available when you:

• Transfer your usual place of residence.

• Are a student coming for full-time study.

• Are moving to get married or enter into a civil partnership.

• Are moving following your marriage or having entered into a civil partnership.

You cannot claim ToR for goods imported from secondary and holiday homes.

Eligibility criteria for Transfer of Residence Relief

The following criteria needs to be met to claim ToR are:

• You must have lived outside UK for at least 12 consecutive months.
• You must import goods within 12 months of moving to the UK.
• You must have owned goods for 6+ months before moving.
• The goods must be personal property and be for personal/household use only.

Personal items for which you’ve claimed the relief cannot be transferred, hired, lent or used as security within 12 months of the date you moved.

Goods can be imported on multiple consignments and claimed on a single claim.

Eligible goods for Transfer of Residence Relief

Relief can be claimed on property intended for your personal use or for meeting your household needs. This includes:

• Household effects, personal effects, household linen, furnishings and any equipment intended for your personal use or for use within your household.
• Cycles, motor cycles, private motor vehicles (and their trailers), camping caravans, pleasure craft and private aircraft.
• Household provisions necessary for standard family requirements, household pets and saddle animals.
• Portable instruments of the applied or liberal arts required by you for your trade or profession.

The relief will not apply to:

• Alcoholic beverages
• Tobacco and tobacco products
• Commercial means of transport
• Non-portable instruments required by you for your trade or profession

Restricted goods, such as firearms or endangered species, will still require licences to bring them into the UK.

Pets and animals

Pets and animals that are brought into the UK for non-commercial purposes will qualify for the relief.

You may require an animal health certificate or pet passport for your animals to enter the UK. Find out more here.

Importing vehicles

Importing a vehicle into the UK can be expensive, particularly when considering VAT and customs duty.

You may be required to pay VAT and UK customs duty when importing a vehicle.

VAT is charged on the total cost of the vehicle, plus any:

• Accessories you bought with it
• Delivery and extra charges
• Customs duty

Customs duty is charged on vehicles imported to:

• England, Wales and Scotland from outside the UK
• Northern Ireland from outside the UK or the EU

The rates you’re charged will depend on the type of vehicle and the country from which you’re importing it.

However, many people are unaware that you may be able to claim full relief from UK VAT and import duty if you qualify under the Transfer of Residence (ToR) scheme. Importing vehicles has specific conditions associated with it that you should be aware of in order to qualify for ToR.

When you make your import declaration to claim relief for a vehicle you are importing into the UK, you must also make a Notification of Vehicle Arrivals (NOVA) declaration.

What you pay when importing vehicles

Vehicle import case study (dns client success story)

Mercedes-Benz G-Wagen Imported from Germany

Recently, we successfully assisted our client, Leila, who relocated from Germany to the UK, in importing her Mercedes-Benz G-Wagen (G-Class) worth €103,000.

By applying for Transfer of Residence (ToR) relief through the correct ToR1 process, Leila was able to bring her luxury vehicle into the UK without paying any VAT or customs duty.

This case highlights the value of ToR relief, particularly for clients importing high-value vehicles. Without our expertise, she could have faced a tax bill of over £20,000 in VAT and duty charges.

How do I apply for Transfer of Residence Relief?

Our advice is to follow the process below:

1. Make a complete list of the items you intend to bring into the UK. You don’t have to identify each item separately; you can say 150 books, 200 items of clothing.
2. You must get approval from HMRC before claiming the relief.
3. Collate and provide evidence to support your claim.
4. Complete a TOR1 form.
5. Obtain a unique reference number to quote when importing the goods into the UK.
6. Ship your goods or carry them with you when you arrive in the UK.
7. Once approval is granted, you’ll receive a ToR approval letter from HMRC, which will need to be passed on to your removal firm or agent.

Customs clearance when you import goods

How to declare personal effects that are travelling with you

For personal goods you are travelling with, you can make a declaration by conduct or an oral declaration. These methods of declaring your goods are still defined as legal declarations.

For more information on how to declare personal goods, read Check how to declare personal goods you bring into or take out of the UK.

If you are arriving for marriage or study purposes, or have approval to use a ToR (for example, a unique reference number), you should provide evidence of this to the customs officer if asked.

How to declare goods if they’re shipped over

You will need to apply for a unique reference number by completing a ToR1 form before your goods are shipped. This unique reference number should then be used by your removal company or agent on the import declaration.

You should provide your removal company or agent with the following information to claim the relief on your declaration:

• Your unique reference number
• Description of goods moving under the relief
• Any goods excluded from the relief, or restricted goods
• You may be asked to provide the commodity codes for your goods
• You may also be asked to confirm the customs procedure code for the relief you’re using
• Any additional information that the shipping agent or removal company may ask

If your removal company or agent cannot provide a valid, unique reference number on your import declaration, you may be invoiced for import duties and administration charges on your goods.

Late claims for Transfer of Residence Relief

Wherever possible, you should seek approval for the ToR before importing your goods to the UK. If you’ve been charged import duties but believe you were eligible to claim ToR, you can still apply for the relief in retrospect.

If the relief is granted and you or an agent made a full declaration using the Customs Declaration Service (CDS), you can complete form C285. The form will enable you to have the duties repaid.

Key benefits and savings from Transfer of Residence relief

Transfer of Residence relief can save thousands of pounds in import costs, as there will be:

• Zero import duties on household goods, furniture, and personal effects.
• Zero customs charges on private vehicles (cars, motorcycles, caravans).
• Zero import VAT on eligible personal belongings.

Which items will I need to pay duty and tax on?

For items that don’t meet the conditions for relief, you’ll be required to pay duty and tax on those items. This can be declared in the usual way for imports on the customs declaration.

You’ll be required to calculate the duty and tax payable. If you’ve used an agent to make the import declaration on your behalf, the agent can arrange payment for you.

If you’re making a declaration to a customs officer, they will calculate the duty and tax and inform you how much to pay. Keep the receipt you’re given as proof that you’ve paid.

If you are importing household goods into the UK and do not plan to move to the UK at the same time, you will likely incur customs duties and import duty. Ensure you get a quote for any potential costs before you import so you don’t get any nasty surprises.

What documents do I need for Transfer of Residence relief?

Please submit PDF or JPG images of the application form as evidence. Before completing the ToR1 form, you will need:

• A complete list of all the goods you’re transferring to the UK. Be specific, i.e., 1 washing machine, 1 fridge, and not ’kitchen appliances’. However, you can list the number of items of clothing (not each item), the number of books, etc. You do not need to provide brand information or values for the items you are listing.
• Your passport photo page
• An animal health certificate or pet passport code for animals you’re bringing to the UK.
• UK address evidence, such as a recent utility bill from the last 3 months, a mortgage or a rental agreement. If you don’t yet have a UK address, you can provide:
  • A statement from the person you’ll be living with and proof of their address
  • Temporary accommodation evidence, such as a hotel booking or Airbnb booking
• Proof of your non-UK address you are leaving (or moved from previously). This again can be a recent utility bill, a mortgage, or a rental agreement.
• Details of any vehicle you’re bringing with you, including the:
  • Year of manufacture
  • Model
  • Brand
  • VIN or chassis number
  • Registration number
  • Date the ID number or registration certificate was issued and the country of issue
  • Purchase date

When should I begin my application for Transfer of Residence UK?

Your Unique Reference Number (URN) provided when you apply will be valid for 6 months, so you can apply up to 6 months in advance of your move date. We recommend applying as early as possible. You should, wherever possible, have your URN before your shipment arrives in the UK to avoid unnecessary charges.

Are there any alternatives to ToR relief?

There may be alternative ways to clear your goods relief-free if ToR is not possible. Options include Returned Goods Relief, Student Relief and Inherited Goods Relief. However, there are strict criteria to be eligible to claim these.

How can dns accountants help?

Don’t miss out on claiming the valuable relief and end up paying customs duties higher than necessary. Our specialist team can advise on VAT relief and ToR relief, and assist you with the necessary documents and paperwork when importing goods into the UK.

Contact dns on 03330603321 or email us at [email protected].

About the author

Siddharth Agarwal
I am a Chartered Tax Advisor (OMB) and ACCA. I have 9+ years of experience in owner-managed business taxation issues, company reorganisations, property taxation, and succession planning. I also work with private clients on bespoke tax planning strategies for trusts, residence status, and non-residents. I aim to fulfil my professional duties towards my clients and keep them satisfied, my utmost priority. I believe in establishing and maintaining businesses and personal relationships as the key to mutual growth.