Low Value Consignment Relief (LVCR) was the relief introduced to allow the Channel Islands to export flowers to the UK without VAT becoming an impediment at a time whenthose islands undertook useful economic activity.
It has, of course, since been exploited by many industries to artificially export goods from the UK to the Channel Islands, only to then subsequently reimport them to the UK without VAT being charged.
The VAT Loophole website has now put up a page dealing with twenty eight of the common arguments about why this abuse should continue, dismissing each in detail.
I strongly recommend such careful research to all who want to bring an end to tax injustice in the UK.
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Yes, Richard Allen has done much valuable work on this. If you are there Richard, when is the court case due? I am watching this very closely and I am getting to the tipping point of “if you can’t beat them, join them”. If nothing happens, my business based in Isle of Man will be shipping through Jersey in 6 months time. Absolute logistical nonsense.
[…] sheer absurdity this comment, made a few moments ago on my blog posted earlier today on common arguments supporting the abuse of low value consignment relief, has to be carefully […]
It is funny that of the 28 reasons in favour of LVCR, one obvious one is missing: that it reduces costs to the consumer. After all, there are millions, probably tens of millions of people in the UK who simply want to buy their DVDs and CDs as cheaply as possible. It is hilarious that not once has it been suggested that, rather than seek to close the LVCR, perhaps it should be extended and items under that threshold in the UK made exempt from VAT. That would surely be the easiest and most popular solution?
@Frank Black
Now tell me what you value more? Cheap DVDs or education for the children of this country?
Or maybe healthcare if education does not float your boat?
That’s the choice
@Frank Black It would. And we asked HMRC …and they found the suggestion hilarious. Literally. It would never happen. They couldn’t afford it either.
@Frank Black We’ve added it in…