Published 16.09.2026
Relocating to the UK often begins with excitement — a new job, a fresh start, or the chance to be closer to family. But alongside those hopes comes a practical challenge: moving the belongings that make a house a home.
For many people, the question isn’t whether to bring possessions, but how to do it without facing punishing costs at the border. This is where the Transfer of Residence (ToR1) application comes in. More than just paperwork, it’s the difference between being welcomed with your belongings, or being met with a bill for thousands in duty and VAT.
This guide explains what ToR1 is, why it matters, how much you could pay if you don’t apply, and the steps to make sure your belongings arrive smoothly.
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The Transfer of Residence (ToR1) relief is HMRC’s system that allows people moving their main home to the UK to bring personal belongings without paying import VAT and customs duty.
It exists to distinguish between someone importing goods for commercial purposes and someone simply relocating. If you qualify, almost everything that makes up your household — furniture, clothing, books, bicycles, even vehicles — can enter the UK tax-free.
The application is made online, and once approved, HMRC issues a ToR reference number. This number is crucial, as your shipping company uses it to clear your belongings through customs.
What Is the Transfer of Residence (ToR1) Relief?
Why the ToR1 Matters When Moving to the UK
Without ToR1 approval, customs will treat your belongings like any other import. That means applying the standard rates of duty and VAT. And while duty might be manageable, VAT is often a nasty shock.
Import VAT is charged at 20% of the total value of your shipment, including shipping and insurance costs. For a container of belongings valued at £20,000, VAT alone could reach £4,000. Add duty, and the figure climbs even higher.
With ToR1 approval, those charges disappear. That is why the form isn’t optional — it is the safeguard that protects you from costs that can derail a move.
The Cost of Not Applying: Import VAT and Duty Explained
Let’s make the numbers clear. Suppose you are shipping £20,000 worth of personal belongings from overseas. Without ToR1, HMRC might charge:
Duty at 5% = £1,000
VAT at 20% (on £21,000: value + duty + shipping) = £4,200
Total bill: £5,200
That bill must be paid before your belongings are released from port. Storage charges can quickly add up if there’s a delay.
By contrast, with ToR1 relief in place, both the duty and VAT are waived. The shipment clears without additional charges, leaving you to focus on settling into your new home rather than covering unexpected costs.
Who Qualifies for ToR1 in 2025
You are likely eligible if:
You have lived outside the UK for at least 12 months.
You are moving your normal home to the UK.
Others who may qualify include:
Students moving to the UK for study.
People relocating due to marriage or civil partnership.
Workers moving on long-term assignments.
Short-term stays and second homes usually don’t qualify, as the relief is meant for genuine home relocations.
What You Can Bring Under ToR1
ToR1 relief covers most household goods, provided they have been owned and used for at least six months. Typical items include:
Furniture and homeware
Clothing, books, and collections
Appliances and kitchenware
Sports equipment and bicycles
Vehicles (with additional requirements)
What You Cannot Bring (Exclusions)
Some items remain taxable even with ToR1:
Alcohol and tobacco
Commercial goods or stock
Brand-new items purchased shortly before the move
Large quantities of identical items
These categories will still attract VAT and duty at the border.
How the ToR1 Application Works
The application is completed online through HMRC’s system:
Fill out the ToR1 form with details of your move.
Submit an inventory of belongings.
Upload required documents (see next section).
Wait for HMRC to approve and issue a reference number.
That reference number is what your shipping agent needs to clear your goods VAT- and duty-free.
The Documents You’ll Need
To prove your case, HMRC usually asks for:
Proof of residence abroad (utility bills, lease, or bank statements).
Proof of your UK move (job contract, tenancy, or property documents).
Passport and visa or residence permit.
A clear inventory of what you’re shipping.
Strong documentation means faster approval and fewer questions.
ToR1 and Vehicles: Cars, Motorbikes, and More
Vehicles are often the most expensive items to move, and without ToR1 the VAT bill can be eye-watering.
To qualify:
You must have owned and used the vehicle for at least six months.
The vehicle must be part of your household relocation.
After arrival, you must still complete:
A NOVA notification within 14 days.
DVLA registration, which may involve modifications or tests.
ToR1 clears the VAT and duty but doesn’t remove these obligations.
Students, Newlyweds, and Other Special Cases
Not everyone moving to the UK fits the straightforward picture of a family relocating permanently. HMRC recognises this, which is why ToR1 can extend to some special circumstances.
Take students, for example. Even though their time in the UK may be limited to the length of a degree, they are allowed to claim ToR relief on the belongings they bring to support their studies. A student arriving with books, a laptop, and personal effects shouldn’t be penalised with VAT charges, provided those items are clearly part of their household move.
The same applies to those moving for marriage or civil partnership. When you are joining a spouse or partner in the UK, the law views it as a permanent relocation of your home. ToR1 ensures that the personal belongings you bring to build your shared life together arrive without unnecessary costs.
Then there are returning expats — people who have lived abroad for more than twelve months and are now coming back. In these cases, ToR relief can be claimed as long as the goods are genuinely personal and have been in use, rather than newly purchased stock. It’s a recognition that homecoming should not mean paying duty and VAT on items you already own.
Common Mistakes That Lead to VAT Bills
If there’s one theme that comes up again and again with ToR1, it’s timing. The most common mistake is waiting too long to apply. Many people think they can deal with paperwork once their goods are already en route, but if the shipment lands before HMRC approval is granted, customs will often demand payment upfront. That payment — especially the 20% VAT — can be crippling.
Another trap is poor documentation. HMRC needs a clear picture of your move. A vague inventory that just says “household goods” or a missing tenancy agreement can raise questions, leading to delays or even rejection.
It’s also important not to assume that everything qualifies. Alcohol, tobacco, and newly purchased items are specifically excluded, no matter how small the quantity. People often slip in new furniture or unopened electronics, only to be met with VAT charges later.
Finally, vehicles are a frequent source of trouble. ToR1 covers the VAT and duty, but people forget about the separate steps — notifying HMRC through NOVA and registering with DVLA. Neglecting these can leave you with a car stuck in limbo.
In each of these cases, the mistake is avoidable. By applying early, preparing thorough documents, respecting exclusions, and understanding the vehicle rules, you protect yourself from the very costs ToR1 was designed to eliminate.
What Happens After Approval
Once HMRC has reviewed your application and is satisfied with your evidence, they will issue a confirmation — usually by email — with your official ToR reference number. This number is more than a formality; it is the key your shipping company or customs agent will use to clear your belongings when they reach the UK.
From that moment, every shipment linked to your relocation can be processed under the relief. If you have multiple consignments — for example, one container leaving now and another in a few months — you do not need to reapply. The original approval can cover them all, provided you declared the possibility of separate shipments in your application.
It’s important to understand that approval doesn’t guarantee that your goods will glide past customs without inspection. Border officials always reserve the right to open containers or check documents. What the approval does guarantee, however, is that when your belongings match the application, you will not be charged VAT or duty.
Think of it as a pre-cleared status. Your goods may still be looked at, but they are treated as personal effects moving home, not as taxable imports. That small difference at the paperwork level translates into very big differences on your bill.
ToR1 as Your Golden Ticket
The ToR1 might strike you as just another government form in a process already full of paperwork, but in reality it is the most valuable document of your entire move. Without it, HMRC has no choice but to treat your belongings as ordinary imports. That means duty, and more importantly, a 20% import VAT charge applied to the entire shipment — furniture, clothing, appliances, everything. For many households, that translates to thousands of pounds in unnecessary costs.
With ToR1 approval, the story changes completely. Your belongings are recognised for what they are — the fabric of your daily life — and they enter the country without duty or VAT. In one simple step, you eliminate the largest financial risk of moving.
If there is one golden rule, it is this: apply early. Give yourself time to gather documents, to double-check details, and to let HMRC process your application well before your goods are on the water or in the air. Keep your reference number safe, and share it with your movers so clearance can be handled smoothly.
Relocating to a new country always brings some uncertainty, but ToR1 allows you to take control of at least one part of the process. By approaching it with care, you protect your budget, secure peace of mind, and make sure that when the boxes finally arrive at your new doorstep, they do so without the shadow of an unexpected tax bill.
For the latest guidance, always check the official GOV.UK resources on ToR1, vehicle imports, and restricted goods. Regulations can evolve, and a quick look at the source will ensure that your move remains compliant.
When viewed this way, ToR1 is not red tape at all. It is your golden ticket to starting life in the UK with your household intact, your finances protected, and your focus where it should be — on making your new surroundings feel like home.
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