Budget 2025 - Import Charges On All Packages - Yes Low Cost From Any Seller Abroad

27th November 2025

The government is ending the current "customs duty relief" that lets many small parcels enter the UK duty-free if they're worth £135 or less.

After the change, all imports — even low-value parcels — will be subject to customs duty.

This was done to make imports and domestic retail more "fair," as the relief was seen as giving overseas online sellers an unfair price advantage over UK retailers.

When it's due to take effect
The removal of the £135 duty-free import threshold will come into force by March 2029 at the latest.

The government has opened a consultation now to work out the details — for example how customs duties will be collected for lots of small imports, how online marketplaces must declare value, and whether there will be additional fees.

What it means for you (and for shoppers/importers)

If you buy goods from overseas online retailers (especially low-cost / low-value items), those imports are likely to start carrying customs duty (and possibly other fees) — making them more expensive than before.

UK high-street shops and domestic sellers may benefit - less undercutting by ultra-cheap imports could help their competitiveness.

Online marketplaces and parcel-importers will need to adapt: new procedures and paperwork for duty & VAT, which could cause delays or extra charges.

Import Duty + VAT: What you'll likely pay

Since the government plans to remove the £135 duty-free threshold, every imported parcel (even very cheap ones) will face:

Customs duty — rate depends on the product type (typically 0-12% for most goods).

VAT at 20% — always charged on the final value including duty + shipping.

What this means in plain English

Even very cheap imports will cost noticeably more — often £3-£5 extra on a £10 item.

Clothing and accessories (high duty rates) get hit the hardest.

Electronics may increase only slightly if duty is 0–5%.

Marketplace sellers (Temu, Shein, AliExpress) will need to charge these fees upfront — expect visible price increases.