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Channel Island loophole closed

[ November 9, 2011   //   ]

The government is to end Low Value Consignment Relief (LVCR) on goods from the Channel Islands from 1 April. The measure has been used by large retailers to ship goods such as CDs and DVDs in bulk to Guernsey and Jersey and then mail individual items to purchasers, avoiding UK VAT. The Government said the move would help recover an additional £140m of VAT a year but it has been criticised in the Channel Islands as it could put about 1700 jobs in the fulfilment industry at risk. LVCR will still apply to imports from other parts of the EU.