A posting ends, the move home is booked, and somewhere on the list is the car. The worry is that bringing it back will land you with a tax bill you did not plan for. For most people coming home from a forces or Crown posting it does not have to, as long as you know which of the three routes your car takes and you sort the paperwork before it ships.
This guide is for armed forces personnel, civil servants, diplomatic and embassy staff, and families coming back with them. The shipping is the same as for anyone else. What differs is the tax relief, and one rule in particular gives Crown servants more time than everyone else.
- Car bought abroad
- Transfer of Residence
- UK car taken out with you
- Returned Goods Relief
- Crown servant time limit
- 6 years, not 3
- Tell HMRC it has arrived
- Within 14 days
Three routes, depending on the car
The question HMRC cares about is where the car came from and whether tax was paid on it. That decides which relief, if any, applies.
| Feature | Usual relief | What you need to show |
|---|---|---|
| Bought abroad during the posting | Transfer of Residence | 12 months living abroad, 6 months owning the car, HMRC reference before it ships |
| Bought in the UK, tax paid, taken out with you | Returned Goods Relief | UK purchase invoice and old V5C, car unaltered |
| Bought in the UK under a tax-free export scheme | Only if it qualifies for a relief | Otherwise tax is due on its value when it returns |
A car you bought while posted abroad
If you bought the car overseas, the relief to look at is Transfer of Residence, ToR for short. It lets the car in with no import VAT and no duty. The conditions on GOV.UK are the same for service personnel as for anyone else moving home.
- You have lived outside the UK for at least 12 months in a row before moving
- You have had the car for at least 6 months before you move
- The car arrives within 12 months of you coming to live in the UK
- You use it here the way you used it before
You apply to HMRC with form ToR1 before the car ships. HMRC gives you a reference, and we put it on the customs declaration when the car lands. One helpful detail for forces families: if you do not have a passport to hand, NATO orders or moving orders can be uploaded as your ID instead.
Our full guide to Transfer of Residence goes through the form and the evidence HMRC asks for.
The 12-month rule after you land. A car that comes in under ToR cannot be lent, used as security, hired out or transferred to anyone else for 12 months from the date you moved. Sell it early and the VAT and duty can become payable.
When a posting is cut short
Postings do not always run to plan. If you are recalled before you have lived abroad for 12 months, GOV.UK says HMRC will consider waiving that condition where circumstances beyond your control are the reason, and you can show you intended to stay outside the UK for that long or longer.
HMRC can also consider waiving the 6-month ownership rule where a special case exists. Either way, you put the evidence in with your ToR1 form. Your posting orders and the date the posting was meant to end are the obvious things to include.
A UK car that went out with you
Plenty of people take their own UK car on a posting. If tax was paid on it here and you are now bringing it back, it can usually return without import VAT or duty under Returned Goods Relief. In practice that means showing the UK purchase invoice and a copy of the old V5C logbook. More on that in bringing a UK car back home.
This is where Crown servants get extra time. Returned Goods Relief normally needs the car back within 3 years of leaving the UK. GOV.UK says that limit does not apply to goods owned by Crown servants returning after a posting overseas, who have 6 years instead. Crown servants include the armed forces, diplomatic staff, and embassy and consular personnel.
A few other conditions from GOV.UK are worth knowing before you book:
- The car comes back in the state it left, apart from work to keep it in working order. Upgrades that add value break the relief.
- To get the VAT relief, the person who exported the car has to be the person bringing it back.
- HMRC asks for the original export declaration with you as the exporter. If you do not have it, they will consider other evidence that the car left the UK.
A car bought tax free in the UK
Some people going overseas buy a new car in the UK under a tax-free export scheme, the Personal Export Scheme in VAT Notice 707. Bringing one of those back is different. GOV.UK says it only comes back free of duty and tax if it qualifies for one of the reliefs, such as ToR.
If it does not, tax is normally charged on the car's value when it comes back, at the rates that apply then. If you are not sure which side of that line your car falls, tell us on the quote form what scheme it was bought under and we will talk it through before anything ships.
The paperwork to gather
Use exactly the same name on every document and on the ToR1 form. Mismatched names are an easy way to slow an application down.
Before the car ships
0 of 8 done
Our guide to the documents you need to ship a car covers the shipping side in more detail.
Getting it home
Wherever the posting was, the journey is the same as for any car we bring in. We arrange collection, ship it or bring it by road, and clear it through customs ourselves as HMRC CDS authorised agents. Cars from Germany usually come over on our own enclosed transporter in about 3 to 7 days. From further afield, the car goes by sea in a container or on a RoRo ship.
The country guides cover each route, including Germany, Cyprus and the USA.
Once it lands, HMRC has to be told it has arrived through NOVA, within 14 days. We do that as part of the import, using your ToR reference if you have one.
Back on UK plates
What happens next depends on which route the car took.
A car that was UK registered before it left is the simpler case. GOV.UK says it does not need vehicle approval. It needs an MOT, then it is registered and taxed, and the usual £55 first registration fee does not apply. The DVLA wants the original foreign registration certificate, which you will not get back, and evidence of any changes made while it was away, such as an invoice for a colour or engine change.
A car bought abroad is registered like any other import. It may need changes for UK roads, such as headlights for driving on the left or a speedo in mph. Then a car under 10 years old takes an IVA test, and an older one takes an MOT. Our guide to left-hand drive cars in the UK covers the usual changes.
Shipping a Car is part of My Car Import, so all of this happens on our site in Castle Donington. We are one of only seven privately operated IVA centres in Great Britain, and our dealer-level DVLA account lets us register imported cars within 10 working days of a pass.
Until it is registered, taxed and insured, the car cannot be driven on UK roads. GOV.UK says you can be prosecuted for doing so, unless you are driving to a pre-booked MOT or approval test.
If tax was charged anyway
The best approach is to have the ToR reference before the car ships, because without it VAT and duty are due on arrival. If you were charged and later find you qualified, GOV.UK says you can still apply for the relief. If it is granted, form C285 is how the import duties are paid back where a full customs declaration was made.
Questions people ask
Do armed forces personnel get special Transfer of Residence rules?
The ToR conditions on GOV.UK are the same for everyone: 12 months living outside the UK, 6 months owning the car, and the car arriving within 12 months of your move. HMRC will consider waiving the 12-month residence rule if a posting is cut short by circumstances beyond your control and you can show you meant to stay that long.
How long do I have to bring a UK car back after a posting?
Returned Goods Relief normally needs the car back within 3 years of export. GOV.UK says Crown servants returning from a posting overseas, including the armed forces, have 6 years.
Can I use my NATO or moving orders instead of a passport for ToR?
Yes. Military personnel without a passport can upload NATO orders or moving orders as ID with the ToR1 application.
Does a returning UK car need an IVA test?
No. GOV.UK says a reimported UK car does not need vehicle approval. It needs an MOT, then it is registered and taxed without the £55 first registration fee.
Can I sell the car soon after I get home?
Not if it came in under Transfer of Residence. For 12 months from your move it cannot be sold, lent, hired out or used as security, or the VAT and duty can become payable.
Coming home soon? Tell us where the car is and how you bought it on the quote form, and we will tell you which route it takes.
