Compliance
Low-Value Imports Duty Relief Scrapped Earlier: What Importers, Retailers & Online Sellers Must Prepare By 2028
The government has advanced the deadline for abolishing duty relief on low-value imports (goods worth £135 or less), domestically undercutting high street businesses — here's what you need to know to stay ahead.
By NomadicTax Research Team • 5-8 min read • June 30, 2026
## Overview of Reform to Low-Value Imports (LVIs)
On **23 June 2026**, the UK government published its intention to **accelerate the removal of duty relief** on goods valued at **£135 or less**, bringing forward the change to **October 2028** from an earlier date. ([gov.uk](https://www.gov.uk/government/news/government-backs-high-street-with-acceleration-of-cheap-import-reforms-and-crackdown-on-dodgy-online-sellers?utm_source=openai))
This move ends customs duty relief on these low-value goods, meaning that even small, low-cost imports will be **subject to customs import duties** by then. It’s part of a broader package to **level the playing field** between online sellers (especially overseas ones) and high street businesses. ([gov.uk](https://www.gov.uk/government/news/government-backs-high-street-with-acceleration-of-cheap-import-reforms-and-crackdown-on-dodgy-online-sellers?utm_source=openai))
## Implications for Importers and Online Marketplaces
- **Cost structure changes**: If you're importing many small or low-value items (<£135), previously you might not have paid import duty; once the relief is gone, each individual shipment may incur duties. Consider cumulative costs (import duty + VAT + customs clearance).
- **Logistics & pricing**: For online sellers it may become less viable to send small individual parcels from overseas unless pricing is adjusted.
- **Customs declarations and compliance**: Expect tighter enforcement. The government is also reviewing how **VAT liability rules** apply to online marketplaces, increasingly pushing for marketplaces to ensure sellers collect/use VAT appropriately. ([gov.uk](https://www.gov.uk/government/news/government-backs-high-street-with-acceleration-of-cheap-import-reforms-and-crackdown-on-dodgy-online-sellers?utm_source=openai))
## Practical Advice Leading Up to October 2028
- **Assess current import flows**: What percentage of goods fall under £135? What customs duty & VAT is being bypassed under current reliefs?
- **Reprice products or group shipments**: Consider combining orders or shipping in bulk to stay above threshold or optimise duty per item.
- **Update contracts & terms with overseas suppliers** and online marketplace platforms about who bears duty & VAT cost.
- **Monitor consultations on online marketplace liability rules** — these may impose extra liability on platforms to ensure sales are compliant. Respond or engage as needed.
## What High Street Businesses & Consumers Should Expect
- High-street retailers may benefit from fairer competition as foreign sellers lose duty relief.
- However, consumers may see **higher prices for low cost imported goods** over time, especially for items currently under the threshold.
- That said, the government is giving six years’ notice and plans consultations to smooth the transition. Draft legislation is expected in the **Finance Bill 2026-27**. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
## Key Dates & Action Points
| Date | Event / Requirement |
|---|---|
| Budget 2025 | Original announcement to remove duty relief for LVIs |
| 23 June 2026 | Government announces that deadline will be moved up to **October 2028** |
| Finance Bill 2026-27 | Legislation to be introduced to give legal force to the change |
Businesses involved in cross-border retail, online platform operations, and logistics should begin scenario planning for duty removal now, to avoid surprises and maintain margins. Stakes are high for compliance, pricing, and the competitiveness between online and physical retail channels.