Shop at Amazom.co.uk, Play, HMV, or other UK based online game retailers? If your main draw to their services are low prices, you might have to turn elsewhere soon. Chancellor George Osborne revealed that the government will soon be consulting the issue of a tax loophole that these sites have been using to keep their prices low.
So how does this loophole currently work? Online retailers have been setting their base of operations in Jersey, dodging the Value Added Tax (VAT). Through this, online retailers can lower their prices below that of street retailers. Although, this loophole only applies to items £18 and under.
The Government will be tackling the issue this May. If plans go through, prices will most likely be raised. The government estimates that this move will add £4 billion to the treasury over the next four years.