Chancellor Rachel Reeves has announced a review of the UK’s current tax exemption on low-value imports amid growing pressure from British retailers. The current rule allows items under £135—commonly sold via platforms like Amazon, Shein, Temu, and AliExpress—to enter the country without customs duty, a loophole critics say is flooding the UK market with cheap, often non-compliant goods.
The review comes as both the US and EU move to phase out similar exemptions, citing unfair competition and safety concerns. Retail leaders including Sainsbury’s, Next, Primark and Theo Paphitis have welcomed the move, arguing it will help protect UK high street retailers and restore a fair trading environment.
The British Retail Consortium called the review “most welcome,” while the British Home Enhancement Trade Association urged the government to lower the duty threshold to £40, citing the estimated 100 million small parcels imported in 2023—many of which bypass safety checks.
Reeves framed the move as a stand for the British economy, warning that unregulated imports may benefit consumers in the short term but pose long-term risks to UK businesses and product safety.
Chancellor Considers Scrapping Tax Breaks for Cheap Online Imports
