Channel Island tax loophole may be reopened by MPs

A tax loophole that let firms with a Channel Islands base ship goods to the UK free of VAT may be reopened by MPs.
The dodge let companies such as Amazon ship VAT-free books and DVDs to customers in Britain, enraging traditional retailers and losing the Treasury billions in revenue.

Known as Low Value Consignment Relief and applying to goods under £15, it was abolished in April last year after a long campaign by high street businesses.
But the Parliamentary Justice Select Committee is looking at the effect of abolition on Channel Islands firms, in particular flower growers. It has visited Guernsey and will visit Jersey next month.

It is expected to lobby the Coalition to reintroduce LVCR, at least for flower growers.

Meanwhile the Guernsey Postal Flowers Association has asked Revenue & Customs to bring back LVCR. But Derek Jarman, of Hayloft Plants, in Pershore, Worcestershire, said: ‘Since this unfair dodge was shut down our business

Via Channel Island tax loophole may be reopened by MPs | This is Money.


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