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Low Value Consigment Relief legal action

20 December 2011

The Minister for Economic Development, Senator Alan Maclean, has issued the following statement on legal action to be taken relating to Low Value Consignment Relief:

"Following discussions between Ministers and with colleagues in Guernsey, and after very careful consideration of legal advice, we have decided to commence legal proceedings through the English courts to seek to clarify EU VAT Law in relation to proposed changes to Low Value Consignment Relief published as part of the draft UK Finance Bill 2012.

"Taking legal action in this matter is a decision that has been carefully weighed. Having received advice from legal specialists in this area informing us that we have a strong case, I am satisfied that we are right to take these initial steps in seeking further clarification of EU Directive 2009/132/EC. Together with the States of Guernsey, we have a duty to protect the interests of the Islands and to that end we will be seeking clarity in the courts in order to help us make well-informed long-term decisions for the future benefit of Islanders."

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