Low Value Consignment Relief ended 'to protect shops'

UK Chancellor George Osborne Mr Osborne said LVCR was one of the "open abuses" of the UK tax system

Low Value Consignment Relief (LVCR) for the Channel Islands was ended to protect high street shops in the UK, said UK Chancellor George Osborne.

Earlier this month, HM Treasury announced the end of the relief, which allowed parcels to be sent VAT free.

In his Autumn Statement, Mr Osborne said: "We're going to tackle the exploitation of LVCR.

"[It] has left our high street music stores fighting a losing battle with warehouses in the Channel Islands."

He said the "open abuse" was one of a number being targeted by the UK government, including stamp duty and capital gains tax.

In the Autumn Statement document it was estimated the ending of the relief, due to take effect from April 2012, would make an additional £90m for the UK government in its first year.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Guernsey

Weather

Guernsey Airport

Min. Night 11 °C

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.