News Article - 19 January 2007
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A pressure group has claimed it will bring judicial review proceedings against the chancellor if he does not lower VAT limits on Channel Islands' goods.

The Forum of Private Business (FPB) has announced that Gordon Brown has two months to lower the threshold for low vale consignment relief (LVCR) before it will seek proceedings, reports Accountancy Age.

Currently LVCR stands at £18 for goods imported to the UK from the Channel Islands, but the pressure group argues the loophole enables bigger firms to obtain an unfair advantage in sales of products such as CDs and DVDs.

The group's campaign manager stated that the most effective action would be for the Treasury to lower the threshold and then ask for a total derogation.

Victoria Carson added: "That would effectively end the viability of operations for those firms that have deliberately taken advantage of the system."

The LVCR ruling allows companies to take lower priced products manufactured in the UK and redistribute them from the Channel Islands to avoid paying VAT.

Established in 1977, the FPB represents the interests of about 25,000 small and medium-sized companies through lobbying parliament and other measures.

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