Transfer of residency relief not available

The taxpayer and his wife moved to France in 1991 but decided to return to the UK in 2016 because of concerns about healthcare and Brexit. They moved into rented accommodation in the UK and put their French property up for sale. Eventually in 2019 a binding sale of the French house was agreed. However it was not possible to ship their furniture back to the UK until 31 December 2020 by which time the UK had left the EU and free movement of goods had ended. The couple’s haulage agent told them that customs duty and VAT were payable on their possessions subject to any transfer of residency relief. The taxpayer applied for relief but HMRC refused on the grounds the taxpayer became UK resident in 2016 so the application was too late.

Transfer of residency relief is available for a person’s own goods...