Postal gift VAT threshold lowered

People posting gifts from the Channel Islands to the UK with a value of more than £36 will have to pay VAT.

Until 1 January, non-commercial parcels up to the value of £40 were exempt from VAT, but the threshold has been lowered by HM Revenue and Customs (HMRC).

Its decision followed an annual revalorisation [re-evaluation] of the euro against the pound sterling.

If VAT is not pre-paid on gifts exceeding £36, the recipient will be charged VAT plus a handling fee.

Jersey Post Group said HMRC's definition of a gift is "an item sent between two private people, is of occasional nature such as a birthday or Christmas gift and where no monetary consideration has been made".