Luxury car imports jump as super-rich look to swerve Brexit costs
The number of luxury car imports has risen sharply over the last year, as wealthy individuals rush to bring high-end motors to the UK ahead of a potential no-deal Brexit.
A total of 3,830 cars were imported in the last financial year, up 16 per cent on the previous 12 months, according to law firm Boodle Hatfield.
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The spike reflects growing concern that a no-deal Brexit could lead to hefty taxes on car imports.
A no-deal exit could see £32,000 in tax added to the import of a car worth £100,000 if the UK has to operate under WTO rules on import and export taxes, the report warned.
The government has previously published plans to charge a 10 per cent tariff on car imports.
Sales of high-end cars have increased in recent years, as classic motors become an increasingly popular investment option for high net worth individuals.
Last year a 1962 Ferrari 250 GTO was sold at Sotheby’s for a world record price of $48m (£40m), more than $10m more than the previous record price for a car.
The booming market for luxury vehicles is in contrast to the slowdown in overall car sales, which have dropped more than three per cent in the last year, according to the Department for Transport.
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Fred Clark, associate at Boodle Hatfield, said: “A no-deal Brexit could mean luxury car imports become 32 per cent more expensive overnight.”
“There is a possibility that moving cars into and out of the UK will become more difficult if the UK leaves the EU with no deal. More high net worth individuals are now taking that risk seriously and bringing vehicles into the UK from the EU.”
Main image credit: Getty