It lets online retailers charge lower prices to consumers but if the UK Treasury extends the 'Disclosure of Tax Avoidance Schemes' to Jersey, the party's over.
They believe that plugging this particular 'leak' in the tax system would net the UK coffers an additional £4 billion over the next 4 years. Currently Play.com, Amazon, Tesco Direct, HMV and The Hut operate out of Jersey to charge lower prices.
"Subject to consultation, the Disclosure of Tax Avoidance Schemes (DOTAS) regime will be extended to enable the listing of specific tax avoidance schemes for direct taxes so that the subsequent use of such schemes will carry consequences for the user," read the Budget documents from the UK Chancellor.
This could led to some bitter rises in videogames prices for the UK.