LVCR abolishment part of Chancellor’s recovery plan
Wednesday 30th November 2011, 2:14PM GMT.
SCRAPPING the relief that currently allows items under £15 to be sent to the UK VAT free, forms a key part of the UK government’s strategy to balance its books.
The Chancellor George Osborne yesterday outlined the measures to safeguard the economy and protect Britain from the ‘debt storm’ in Europe.
With the re-introduction of VAT on all goods shipped from the Channel Islands, he estimates that the measure will generate £90m. next year, £95m. the year after, increasing to £110m. by 2016/17.
The rising forecast appears to be at odds with the reasons HM Treasury gave for wanting to scrap the relief in the first place.
KMPG head of tax Tony Mancini (pictured) said the figures outlined indicated that around £450m. to £500m. worth of goods were purchased from Jersey and Guernsey.
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and when they all pack up and leave thats less tax for the island and more unemployed its not rocket seince whats next vat then watch the banks disaper
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If the tax is based on current levels, surely there will be a lot less tax when half the companies leave Guernsey and Jersey.
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