Tax on Imports under £135

Lord Kirkhope of Harrogate Excerpts

Monday 14th July 2025 Lords Chamber

[Lord Livermore (Lab)]

It is not quite 14 years, I think; these rules came in in 2021. The previous Government prioritised trade facilitation in the aftermath of Brexit and, since 2021, VAT on imports below £135 is collected at the point of sale to prevent congestion at the border. However, this has opened up some opportunities for the rules not to be followed. We recognise that and have established a review, which the previous Government did not.

[Lord Kirkhope of Harrogate (Con)]

My Lords, this imprecision is not helping. In answer to my noble friend Lord Bridges and the noble Lord, Lord Sikka, there was an attempt by the Minister to indicate what modest incomes were. However, equally confusing and rather upsetting is the Government’s inability to define what exactly they mean when they talk about “wealthy people”. Can he be a little more precise and helpful to us?

[Lord Livermore (Lab)]

The noble Lord is very kind in trying to get me to speculate on the Budget, but that is something that I am not going to do. I will not be giving a running commentary on the fiscal forecast, nor will I be speculating on the next Budget now. The Government have pledged not to increase taxes on working people, which is why we are not increasing income tax, national insurance contributions or VAT.