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Importing a Car From the USA: Which Value Does HMRC Use?

Published 2 November 2026 · 7 min read

Duty and import VAT on a car from the USA both start from one figure, the customs value. For most purchases that is the price paid, plus the cost of getting the car to the UK border, converted from dollars into pounds. VAT is then worked out on that value plus the duty and the costs up to the first UK destination. The rate of duty depends on the type of vehicle and where it comes from, so ask the person making your import declaration. This guide covers the value.

People moving home with a car, buying a car from a US dealer or auction, and families bringing a car back from a relative all end up at the same question: what number does HMRC start from? The answer sets the tax, so it is worth understanding before the car ships. This guide sets out what GOV.UK counts, with a worked example in dollars. Customs declarations and the tax itself are handled by Classic Import Co, a company we work with regularly; we value the car.

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What is the customs value of a car from the USA?

For most purchases it is the transaction value, called Method 1. GOV.UK defines it as the "price paid or payable by the buyer to the seller for the goods when they are sold for export to the UK", and says it must be the last sale for export to the UK. HMRC says it is the normal method and tries it first (GOV.UK, Method 1, read on 2 November 2026). So for a car bought from a US dealer, the figure on the dealer's invoice is the starting point. The value has to be declared even when no duty or VAT turns out to be payable.

What gets added to the price?

Method 1 says the cost of transport, insurance, loading and handling connected with delivering the car to the UK border is added to the price, along with packing and any selling commission. For a US purchase that includes the haul from the seller to the port and the ocean freight, but only up to the UK border. Buying commission paid to your own agent and UK delivery charges can be left out of the customs value if they are shown separately (GOV.UK, delivery costs). The words "if shown separately" matter, so ask the shipper for an invoice that splits the stages.

How do dollars become pounds?

GOV.UK says amounts in a foreign currency must be converted into sterling using HMRC's rules on converting foreign currency (GOV.UK, VAT value). HMRC publishes monthly customs exchange rates on the UK Trade Tariff site. A bank or card rate is a different figure, and the pages we read do not say which month's rate applies to a given car, so ask the person making your declaration.

A worked example in dollars

This uses made-up figures and an invented exchange rate of $1.30 to £1, only to show the steps. A car is invoiced at $20,000. Getting it to the UK border costs $2,700 in transport and insurance. The customs value is $22,700, which at the invented rate is about £17,462. Duty is worked out on that, at the rate for the type of vehicle and the country it comes from, which your agent will tell you.

Import VAT is worked out on a larger figure. GOV.UK says the VAT value is the customs value plus incidental expenses such as commission, packing, transport and insurance up to the car's first destination in the UK, plus any customs duty payable. The GOV.UK page on paying VAT and duty says the same in short: VAT is charged on the total cost of the vehicle plus any accessories bought with it, delivery and extra charges, and customs duty. So the order matters: value first, then duty, then VAT on all of it.

What if you are moving to the UK with the car?

GOV.UK says there is no VAT or customs duty if you are moving to the UK with your vehicle and you qualify for relief. The conditions are set by HMRC, and Classic Import Co handles the application. Our guide to transfer of residence and when a car valuation is needed explains where a value still matters.

What if the car was a gift, or there is no invoice?

Method 1 needs a sale. GOV.UK lists free consignments such as gifts as cases where "there's no sale", so Method 1 cannot be used and the next methods are tried in order. A car sold between relatives or friends at a low price raises its own questions about whether the price paid is the whole story. We cover the gift case in gifted a car from abroad and the missing-invoice case in imported car with no invoice.

What does HMRC want to see?

Method 1 says to use the seller's invoice, or whatever document the seller uses to ask for payment, as long as "there can be no doubt about the document's authenticity" and it carries enough information to show the declared value is the total paid or payable. If HMRC doubts the declared value, GOV.UK says it will ask for more information, review it, and tell you in writing before a final decision; you then have 30 days from the date of the letter to ask for a review. You must keep the documents for at least 4 years.

Where does a valuation fit in?

We value the car; we do not make customs declarations or decide which valuation method HMRC accepts. A written valuation gives an independent figure with the comparable cars behind it, which can help where the invoice is missing, looks low, or is questioned. Whether HMRC accepts it is its decision. Classic Import Co handles customs, NOVA and the DVLA paperwork, and its import tax calculator shows the tax on a car's value. Our guide to registering an imported car with the DVLA covers the step after the tax.

Frequently asked questions

How is the value of a car imported from the USA worked out?

For most purchases HMRC uses Method 1, the price paid or payable for the car, plus transport and insurance to the UK border, packing and selling commission. Amounts in dollars are converted into pounds under HMRC rules, and VAT is worked out on the customs value plus duty and the costs up to the first UK destination.

Is the US invoice enough for HMRC?

GOV.UK says to use the seller's invoice or payment request if there is no doubt about its authenticity and it shows the total paid or payable. If HMRC doubts the declared value it asks for more information before deciding.

Do I pay duty and VAT if I am moving to the UK with my car?

GOV.UK says there is no VAT or customs duty if you are moving to the UK with your vehicle and qualify for relief. Ask your customs agent whether you qualify.