10 November 2011
Low Value Consignment Relief (LVCR) allows goods with a value of less than £15 (£18 prior to 1 November 2011) to be imported from the Channel Islands VAT free. The Treasury has announced its intention to withdraw LVCR for commercial consignments of goods arriving in the UK from the Channel Islands with effect from 1 April 2012.
In recent years, the use of LVCR, particularly for imports of DVDs and CDs, has dramatically increased, costing the Treasury in the region of £140m per annum. The Treasury has said that the withdrawal of LVCR will increase fairness for UK retailers.
LVCR will continue to be available for commercial consignments of goods imported from other non-EU countries.
Should you have any questions concerning this, or any other VAT issues, please contact a member of our VAT team.