Healthspan challenges LVCR rule change

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Healthspan, a Guernsey health supplement company, is to launch legal action against the UK government for its decision to end VAT relief on low value goods exported from the Channel Islands to the UK.

Derek Coates, the group's chief executive, stated he will launch the challenge following consultation and legal advice from two leading accountancy firms and UK lawyers "on the basis of discrimination against the Channel Islands". 

The Treasury announced last week that on 1 April it will close the Low Value Consignment Relief (LVCR) VAT loophole that allowed retailers to avoid paying tax on goods below £15 to 'end exploitation of the rules’.

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