Hi Pete,
Did you look into my comment, repeated below;
Funny, I was asking this question on the phone to the Post Office just a week or two ago and I seem to remember the official telling me that there is no customs charge on used / second hand items, or if the package is marked gift.
Even if it is a gift, or used or second hand, it still has value so can therefore be insured.
You'd best double check first though. Pretty sure I'm correct.
Denbo.