asked Her Majesty's Government:
What powers are available to HM Revenue and Customs to prevent the marketing to United Kingdom mainland consumers of unlicensed medicinal products by companies based in the Channel Islands; and what steps they intend to take to address this issue. [HL2315]
HM Revenue and Customs has no powers to prevent the marketing of unlicensed medicinal products as described. Policy on medicines legislation is the responsibility of the Medicinal and Healthcare products Regulatory Agency (MHRA), but it does not have jurisdiction in the Channel Islands. The islands have their own legislative assemblies.
asked Her Majesty's Government:
What assessment they have made of the revenues lost to HM Treasury as a result of (a) the VAT exemptions enjoyed by businesses based in the Channel Islands supplying unlicensed medicines to United Kingdom mainland consumers, and (b) the ability of such businesses to avoid United Kingdom corporation taxes. [HL2318]
The information requested is as follows:
(a) no such assessment has been made; and
(b) corporation tax would continue to be charged in accordance with the normal residence rules.
asked Her Majesty's Government:
What assessment they have made of the constitutional position of the Channel Islands; and what plans they have to ensure that the special position of the Channel Islands is not abused to provide a home for those marketing illegal and potentially dangerous products to the United Kingdom. [HL2319]
The Channel Islands are self-governing dependencies of the Crown. They have their own directly elected legislative assemblies, administrative, fiscal and legal systems, and their own courts of law. They do not form part of the United Kingdom, and UK legislation does not apply to them unless specifically extended. They are not members of the European Union, but enjoy a special relationship with the EU under Protocol 3 of the UK's treaty of accession.
The UK is working with the authorities in Jersey and Guernsey to determine the extent to which EU legislation governing the composition, presentation and marketing of food supplements and herbal remedies applies. Both Jersey and Guernsey have undertaken to meet any EU obligations that arise.