Jersey government to challenge LVCR end in court

There may be hope for any offshore business utilising low value consignment relief (LVCR) in Jersey after an official suggested they would be appealing an end to the rules.

Under current rules, any firm with an offshore company registration in the Channel Islands can utilise LCVR to sell consumer goods price under £15 without paying VAT.

However, government plans will see these rules come to an end in April, in a move that could prove particularly damaging for companies utilising the rule.

But speaking to the Daily Telegraphy earlier this week, Jersey's economic development minister Senator Alan Maclean suggested that they would be challenging the closure of the LVCR rule.

Mr Maclean hit out the government ruling as "discriminating against the Channel Islands" despite other non-EU jurisdictions continuing to enjoy the rule.

Under the new rules, any offshore company set up in Switzerland, Hong Kong and Cyprus will still be able to enjoy the same VAT exemption rules.

The Jersey government is now believed to be consulting with its legal representatives before moving forward with any action.