Pressure mounts on Channel Islands' VAT loophole

Related Stories

More than 1,000 local jobs could be at risk as pressure mounts on the Channel Islands online shopping industry.

A debate in the House of Lords gained cross-party support to close a VAT loophole which costs the UK government £130m each year in lost tax.

The peer behind the motion, Lord Ralph Lucas, branded the industry a "smuggling enterprise".

Goods worth under £18 sent to the UK from outside the EU, including from the Channel Islands, have VAT-free status.

A number of online shopping companies take advantage of the Low Value Consignment Relief.

The Commercial Secretary to the Treasury, Lord Sassoon, said changes to the loophole would be announced in the budget later this month.

More than 1,000 people work in the industry in the Channel Islands.

More on This Story

Related Stories

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

BBC Jersey

Weather

St Helier

9 °C 3 °C

Features

  • Firth of Forth bridgeWhat came Firth?

    How the Forth was crossed before the famous bridge


  • Petrol pumpPumping up

    Why are petrol prices rising again?


  • Image of George from Tube CrushTube crush

    How London's male commuters set Chinese hearts racing


  • Elderly manSuicide decline

    The number of old people killing themselves has fallen. Why?


  • TricycleTreasure trove

    The lost property shop stuffed with diamonds, bikes... and a leg


Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. 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.