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Here’s another question which often divides opinion!
The American Dream on British Roads: A Guide to Importing a Classic Ford Mustang
So, you’ve seen the perfect Ford Mustang in America and you want to bring it over. Whether it is a 1965 Fastback or a 1969 Boss 429, the allure of American muscle is undeniable. However, the journey from a sun-drenched California garage to the winding lanes of the English countryside involves more than just a long boat ride. This article will tell you how to navigate the bureaucracy and exactly how much it will cost to bring your classic home.
Navigating the Paperwork: Required Forms
Importing a vehicle is a multi-stage process involving both HM Revenue and Customs (HMRC) and the Driver and Vehicle Licensing Agency (DVLA). The process begins the moment the car touches British soil. You must notify HMRC within 14 days of the vehicle's arrival using the Notification of Vehicle Arrivals (NOVA) system. Failure to do so can result in significant fines.
For private importers, the primary document for declaring the vehicle and paying the necessary taxes is Form C384. If you are moving to the UK and bringing your car as part of your personal effects, you may instead use Form C104A to apply for "Transfer of Residence" relief, which can waive certain duties. Once the taxes are settled, you will need Form V55/5 to apply for the first vehicle tax and registration with the DVLA.
The Financial Breakdown: Taxes, VAT, and Duties
The most critical distinction when importing a car is its age. While modern cars face steep levies, classic cars—defined by HMRC as being over 30 years old, in their original state, and of historical interest—fall under Customs Heading 9705. This classification offers substantial tax advantages that make the "American Dream" far more affordable.
Under this heading, the standard 10% Customs Duty is reduced to 0% (Nil). Furthermore, the standard 20% Import VAT is slashed to a preferential rate of 5%. This VAT is calculated on the "CIF" value: the Cost of the car, plus Insurance, plus Freight (shipping) costs.
The "Trump Factor": Tariffs and Trade Wars
Recent shifts in global trade policy, particularly the tariffs introduced by the Trump administration in 2025, have caused concern among automotive enthusiasts. While a 25% tariff was initially threatened on all car imports to the US, a subsequent US-UK trade deal in May 2025 reduced this to 10% for a quota of UK-made vehicles.
Crucially for the classic car collector, these "trade war" tariffs are primarily aimed at modern manufacturing and protecting domestic industries. Because classic cars are classified as "Goods of Historical Interest" (Heading 9705), they have largely remained insulated from these reciprocal levies. While the UK has discussed reducing its 10% duty on modern US cars in response to the deal, the 5% VAT and 0% Duty status for classics remains the gold standard for importers.
Case Study: Importing a 1965 Ford Mustang
To illustrate the costs, let us consider a 1965 Ford Mustang purchased in the USA for $30,000 (approximately £23,500).
1.Purchase Price: £23,500
2.Shipping & Insurance: £2,500 (Container shipping is recommended for classics)
3.Total CIF Value: £26,000
4.Customs Duty (0%): £0
5.Import VAT (5% of £26,000): £1,300
6.Port Fees & Handling: £400
7.DVLA Registration: £55
The total cost to bring the car to your door, excluding any necessary MOT testing or minor road-legal modifications (such as amber indicators), would be approximately £27,755. In comparison, a modern vehicle of the same value would cost over £34,000 to import, highlighting why the classic market remains so vibrant despite shifting political tides.
"The classification of a vehicle as a 'collector's item of historical interest' is the single most important factor in making the importation of an American classic financially viable."
By understanding these regulations and preparing your paperwork in advance, you can ensure that your Ford Mustang's journey across the Atlantic is as smooth as a V8 engine on an open highway.
