In the Autumn Budget presented on 26 November 2025, the UK Government confirmed that the current £135 duty-free limit for low-value imports will be abolished. The change is expected to take effect no later than March 2029.
Under the current rules, parcels worth £135 or less can be imported into the UK without customs duties being charged. This regime has been widely used for distance sales made by e-commerce platforms based outside the UK.
According to the Government, removing the duty-free limit is intended to create a more level playing field for UK-established businesses. Companies based in the UK already pay customs duties on the goods they import, while many overseas sellers have been able to avoid these charges on low-value consignments.
The measure is expected to generate around £600 million per year in additional revenue.
Before the reform is introduced, the Government will launch a public consultation to define how the system should work in practice. This will cover reporting and data requirements, how customs duties should be calculated and collected, whether administrative fees should apply to low-value imports, and any VAT adjustments needed to ensure consistency with the new framework.
With this reform, the UK is moving in line with a wider international trend to tighten controls on cross-border e-commerce and reduce tax distortions linked to low-value imports. Similar measures have been introduced in the United States, where the former USD 800 limit was removed in August 2025, and are expected shortly in the European Union with the withdrawal of the current EUR 150 threshold.
