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It's only illegal if the item is in fact not a "repaired item". Anything that stops Customs & Excise getting revenue they feel they deserve would be classed as such. I'm not encouraging you, but it...

You do have to pay duty on a gift, it just has a slightly higher threshold.
Repaired item indicates that the item has not been purchased, & therefore should not be liable to duty on it's value. It's...