Leaving the UK: What You Can Reclaim Besides the P85 Tax Refund

Almost everyone leaving the UK knows about form P85 and the income tax refund. After that the myths start: VAT refunded on your shopping at the airport, the health surcharge recalculated for the years you did not use. The first no longer works in England, Wales and Scotland; the second never works at all. Here is what the state actually gives back when you leave.

Can you reclaim VAT at the airport when you fly out?

In Great Britain, no. GOV.UK is explicit: in England, Wales and Scotland you can buy goods tax-free only if the shop delivers them straight to an address outside the UK. The tax-free desks at Heathrow or Gatwick no longer refund anything on goods you carry out yourself — the scheme for personal exports has been closed, for tourists and departing residents alike.

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Does Northern Ireland still refund VAT?

It does, with conditions. You can only get a refund if you take the goods out of Northern Ireland and out of the EU, within 3 months of buying them. A Northern Ireland resident qualifies only if leaving for at least 12 months. Most mail order and internet purchases are excluded. The scheme is optional for retailers — ask before you pay.

So how can you buy VAT-free before you go?

One legal route is left: ask the shop to send the goods straight abroad, to your new address. That sale is made without UK VAT. The condition is strict — you cannot carry the item out yourself, the seller must arrange delivery. Import duty and local VAT at the destination still apply.

Can you buy a car VAT-free if you are taking it with you?

Yes, and this is the largest sum on the whole list. The Personal Export Scheme covers new vehicles: from Great Britain to anywhere outside the UK, and from Northern Ireland to a non-EU country. You can drive the vehicle in the UK for up to 6 months after delivery, or up to 12 months if you are not a UK or EU resident. You must intend to be away with the vehicle for at least 6 months and you usually have to drive it yourself. The export date is shown on form VX302; miss it and you pay the UK VAT in full. After export you send the VX302 to the DVLA. For Northern Ireland to the EU the rule is different: leave within 2 months, do not drive the vehicle in the UK, and pay VAT in the destination country using form VAT 411.

What does the DVLA refund on vehicle tax?

Every full month of tax left. It is triggered when you tell the DVLA the vehicle has been sold, declared off the road with a SORN, written off, scrapped or exported out of the UK. There is no other way to cancel vehicle tax. You will not get back credit card fees, the 5% surcharge on some Direct Debit payments or the 10% surcharge on a single six-month payment. The cheque goes automatically to the name and address on the log book; if it has not arrived after 8 weeks, call the DVLA.

Is the immigration health surcharge refunded if you leave early?

No. This is the most expensive misunderstanding of all. GOV.UK lists "you leave the UK before your visa ends" among the cases where the IHS is not refunded. You get money back only if you paid twice for the same application, if the visa was refused, if you withdrew the application before a decision, or if you were granted less time than you asked for. Duplicate payments covering six months or more are rounded down to the nearest 6 months — a duplicated 15-month period returns 12 months, and anything under six months returns nothing. You do not apply: the money goes back to the card you paid with, usually within 6 weeks of the visa decision.

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What happens to National Insurance and your pension?

National Insurance you have already paid is not refunded — it has turned into qualifying years. You can, however, keep building those years from abroad with voluntary contributions: in 2026 to 2027 that is £3.65 a week for Class 2 and £18.40 a week for Class 3. You can fill gaps for the past 6 years, and the deadline for each year is 5 April. For anyone who may one day claim a UK State Pension, this is usually the best-value item on the list.

Can you move a UK pension pot abroad?

You can, but only into a scheme with QROPS status, and usually with tax. The overseas transfer charge is 25% of the amount transferred; if you are otherwise exempt and exceed your allowance, the 25% applies only to the excess. The overseas transfer allowance is usually £1,073,100. The main exemption is living in the country where the QROPS is based. There is also a five-year rule: move to another country within 5 years of the transfer and you must complete form APSS 241 — moving to the scheme's country gets the tax refunded, moving away triggers the same 25%.

And income tax?

That is form P85, a separate procedure with its own deadlines and your P45, covered in its own guide on ONLYWAY NEWS. In short: leave part-way through the tax year and your personal allowance has been used unevenly, so an overpayment is almost guaranteed.