Feeds

High Court confirms 'cheap DVD' tax loophole will close

Rules Chancellor's plan is not illegal

Internet Security Threat Report 2014

The English High Court has ruled that the government may close a tax loophole allowing online retailers to ship low-cost goods from the Channel Islands VAT free.

Chancellor George Osborne said in November 2011 that the Low Value Consignment Relief (LVCR) provision would be abolished on 1 April 2012.

The plan was challenged in the High Court the Governments of Jersey and Guernsey, which claimed the ban would not only discriminate against its exports but was also illegal.

However, the Court yesterday ruled that the Treasury was was within its rights to abolish LVCR.

LVCR allows companies to ship goods priced at less than £15 to be shipped into the UK from outside the European Union without attracting the 20 per cent VAT sales tax. It was originally implemented to speed the import of small shipments of perishable goods into the UK.

However, many online resellers have cottoned on to the loophole during the past two decades, most notably shipping CDs, DVDs and, more recently, Blu-ray Discs from Jersey and Guernsey, which are not part of the EU, to allow them to offer buyers even lower prices.

The practice, the Treasury has estimated, costs the Exchequer around £110m a year. ®

Internet Security Threat Report 2014

More from The Register

next story
Oi, Tim Cook. Apple Watch. I DARE you to tell me, IN PERSON, that it's secure
State attorney demands Apple CEO bows the knee to him
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Will BlackBerry make a comeback with its SQUARE smartphones?
Plus PC PIMs from company formerly known as RIM
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Hey, Mac fanbois. HGST wants you drooling over its HUGE desktop RACK
What vast digital media repository could possibly need 64 TERABYTES?
Soundbites: News in brief from the Wi-Fi audiophile files
DTS and Sonos sing out but not off the same hymnsheet
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.