Chancellor lowers LVCR threshold
The Chancellor has lowered the threshold relating to low value imports from suppliers outside the EU from £18 to £15, although many are concerned that he has not gone far enough.
While it’s a step in the right direction, industry groups fear the move will not prevent large companies taking advantage of the Low Value Consignment Relief (LVCR) loophole.
The Forum of Private Business (FPB) was quick to issue a statement after the Budget: “In particular, the organisation is concerned that simply lowering from £18 to £15 the threshold price of goods shipped via the Channel Islands on which no VAT is payable will not stop large companies exploiting LVCR."
Audrey Fearing, VAT partner at Ernst & Young, also voiced her concern: