The £135 Question: Is Britain About to Tax Your Online Shopping Cart?
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The UK plans to scrap its £135 low-value import relief by 2029, following the EU and US in closing the cheap-parcel loophole — with a real hit to consumer prices.
The UK plans to eliminate its £135 customs relief threshold for low-value imports by March 2029, aligning with similar moves already under way in the EU and US. The change would bring hundreds of millions of annual parcels into scope for VAT and duties, and could raise prices on affected goods by 20–30%. Major retailers back the move, but business groups warn it could be inflationary and fall hardest on SMEs and lower-income consumers. It’s part of a broader global push to regulate cross-border e-commerce and capture tax revenue from the flood of cheap direct-to-consumer imports.
Originally published on Substack, March 24, 2026.