The UK government is in open consultation to reform customs treatment of low-value imports (LVIs) into the United Kingdom. Their proposals are to scrap the ‘de minimis’ customs relief that currently permits low-value goods to be imported without paying duties.
Currently, low value imports – goods with a value of £135 or less being imported into the UK – can claim a customs duty relief. VAT is due on these goods following reforms in 2021. Goods worth more than £135 can incur a duty of up to 25%.
Following a significant increase in LVI volumes over recent years, the government has reviewed the existing customs arrangements for LVIs and concluded that these require reform.
As set out in the 2025 Autumn Budget, the measure would remove the duty-free status for parcels worth under £135 — a limit frequently used by overseas e-commerce sellers that ship items directly to UK customers. The Chancellor announced in the budget the removal of the relief could be expected from March 2029 at the latest.
Retailers had expected chancellor Rachel Reeves to move faster after months of pressure from British high-street groups who say the current system allows overseas e-commerce giants to undercut domestic prices.
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