The government is to change the tax rules that have allowed retailers to avoid paying VAT by sending goods from the Channel Islands.
The loophole has been used increasingly in recent years by companies selling CDs and DVDs online, such as Play.com, Tesco and Amazon.
Low-value consignment relief will no longer apply to goods sent to the UK from the Channel Islands, with effect from 1 April 2012.
For a high level summary, click here to read the full BBC article
For a more detailed explanation, click here to read the full Taxation article