The U.K. government has announced that it intends to abolish its duty-free exemption on imported goods worth £135 or less by March of 2029 at the latest, a step that mirrors recent policy changes in the United States and the European Union.

Currently, such low-value goods imported into the U.K. are exempt from customs duty, and are only subject to value-added tax (VAT). Citing a sharp increase in the volume of low-value parcels entering the U.K. in recent years, and sustained pressure from domestic retailers, who argue the exemption gave foreign ecommerce sellers an unfair advantage, the U.K. government has concluded that existing regulations require reform.

The U.K. has opened a public consultation in November 2025, which will close on March 6, 2026 to enable public input on upcoming procedures and changes, including tariff treatment for low-value parcels, data collection and compliance, potential administrative fees, and possible changes to VAT collection.

According to government estimates, ending the relief could generate up to £600 million annually in revenue.

It will also align the U.K. with recent international reforms, as the EU plans to withdraw its own duty-free exemption for low-value parcels or those meeting the €150 threshold in 2028.

The United States, on the other hand, has officially ended its US$800 "de minimis" exemption rule on August 29, 2025.