It looks rather as if this "hammer" was confiscated during an attempt at illegal importation. The C&E authority would then impound the item, and if its owner did not pay whatever fees. fines, etc., were imposed within a specified time, it would become the property of the Customs and Excise Authority. They would then be entitled to dispose of it at auction, and presumably have assessed its value at 1400.00 units of currency (whatever they may be), and the attendant VAT as 245.00. Vat on the hammer would presumably then be described as "bonded VAT", as "VAT on an item subject to customs bond".

The auction "buyer's premium" is 49.35.

That my interpretation, anyway...

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Note added at 13 hrs (2008-03-21 10:31:32 GMT)
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It looks rather as if the hammer is under British customs bond, with a VAT rate at 17.5% - am I right?