The UK Government says that it will close the VAT loophole that has enabled mail-order operations based in the Channel Islands to sell low-cost goods to customers back in the UK without paying the 20% sales tax. Independent retailers who can't afford an offshore base have campaigned on the issue for a number of years against the
"Low Value Consignment Relief". Many mail-order operations including most of the big mail-order CD and DVD sellers will no longer have a 20% advantage over their mainland competitors and it is expected that at least 1000 jobs will be lost on the Islands.