Many UK homeowners with second properties in France are facing new VAT and duty charges when moving goods overseas. HMRC have issued guidelines for businesses importing or exporting to and from the UK into Europe but some second homeowners are struggling to interpret how the rules affect them.
Andrew Cross from Arcus said; ‘Since the UK exited the EU VAT Regime on 31st December 2020, businesses in the UK have had to consider imports and exports to and from Europe in a new way and the way VAT is accounted for has also changed.’
People moving their residence from the EU to the UK can move their personal affects or household goods under transfer of residency rules which are normally free of customs duty and import VAT. However, no particular exemptions from import taxes and duties apply when bringing items to a second home. Customs duties and import VAT may be payable on both sides of the channel depending on the value and type of goods.
The value of household goods and personal effects will be based on their current second- hand value. Furniture, artwork and antiques tend to have a 0 per cent customs duty rate at import, whereas clothing can attract a 12 per cent duty. Goods will attract an import VAT of between 5 and 20 per cent. To qualify as an antique, there may be a requirement to hold proof that the items were produced more than 100 years ago.
If you are a UK resident moving goods back into the UK after selling your French property, you will need to declare any profit you have made on the sale as part of your worldwide income. If you would like help completing your annual Self Assessment Tax Return call us on 01572 770552 or get in touch @arcusrutland.