We have put forward our proposals and are working hard to reach a deal with the European Union (EU). Avoiding tariffs is beneficial to both sides, so our aim is a zero tariff zero quota Free Trade Agreement (FTA). The UK Global Tariff (UKGT) is the UK’s permanent tariff, and will apply from 1 January 2021. It will apply to all trade that does not benefit from a preferential arrangement, such as an FTA.
In designing the UKGT, we assessed in depth all available evidence submitted during the public consultation and considered a range of factors, including the five principles set out in the Taxation (Cross-border Trade) Act 2018. We have also conducted our own assessment to ensure that the UKGT is robust and supportive of the UK’s economy.
Reducing the cost pressures and processes associated with trade is in the interests of people and businesses across the UK. No tariff lines have had their tariff increased under the UKGT.
We will publish more analysis on the UKGT in the Tax Information and Impact Note (TIIN) alongside the legislation, as is standard practice.