Feeds

High Court confirms 'cheap DVD' tax loophole will close

Rules Chancellor's plan is not illegal

The Power of One Brief: Top reasons to choose HP BladeSystem

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. ®

Application security programs and practises

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Microsoft confirms secret Surface will never see the light of day
Microsoft's form 8-K records decision 'not to ship a new form factor'
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.