LITIGATION over the decision to end VAT relief for goods shipped from the Channel Islands could end up costing millions of pounds and take years, according to a legal budgeting expert.

THE money Guernsey has budgeted to challenge the UK’s decision to scrap VAT relief on low value goods exported from the island will not be enough to go all the way through the courts, a leading advocate and barrister has said.

GUERNSEY could end up spending more than has been stated to challenge the UK’s decision to scrap VAT relief on low value goods exported from the island.

THE reasons behind scrapping the relief that currently allows items under £15 to be sent from the Channel Islands free of VAT have been outlined by HM Treasury.

COMMERCE and Employment minister Carla McNulty Bauer (pictured) has insisted that there is no conflict of interest over her previous involvement in the fulfilment industry and discussions over the abolition of low value consignment relief.

A DOZEN Channel Island businesses have already enquired about moving to Switzerland following the scrapping of an agreement that allowed goods under £15 to be shipped to the UK VAT free, the country’s postal service’s fulfilment expert has said.

TRADITIONAL Guernsey flower growers are devastated by the ending of a relief that allowed goods under £15 to be shipped to the UK VAT free.

Commerce and Employment has defended the department’s attempts to regulate companies using the island to take advantage of VAT relief.

NOW that the anticipated announcement has been made by the UK Treasury about ending VAT relief for local businesses exporting to the UK, it is clear to see that this is a potentially shattering blow for not just the hundreds working in the fulfilment sector but also for the two Channel Island economies.

A GROUP of Guernsey companies is mounting a legal challenge against the scrapping of a relief that allows goods under £15 to be shipped VAT-free from the Channel Islands to the UK.