VAT free imports from the Channel Islands to end

Nov. 14, 2011 - PRLog -- Low Value Consignment Relief (LVCR) allows goods with a value of less than £15 (£18 prior to 1 November 2011) to be imported from the Channel Islands VAT free.

The Treasury has announced its intention to withdraw LVCR for commercial consignments of goods arriving in the UK from the Channel Islands with effect from 1 April 2012.

In recent years, the use of LVCR, particularly for imports of DVDs and CDs, has dramatically increased, costing the Treasury in the region of £140m per annum.  The Treasury has said that the withdrawal of LVCR will increase fairness for UK retailers.  
LVCR will continue to be available for commercial consignments of goods imported from other non-EU countries.

ERA Director General Kim Bayley said, "We have always supported a level playing field for all retailers and recognise the concerns of smaller operators who have felt unable to compete with Channel Islands shipments. But the Government's latest proposals only partially address the issue."

Moore Stephens is an International Chartered Accountant with a specific focus on audit and assurance services and business tax advice. http://www.moorestephens.co.uk/aldersgate.aspx