The decision to reduce the price at which goods were eligible for LVCR in March 2011 tabled the issue for further parliamentary discussion, thus paving the way for its scheduled 2012 closure. Unlike the narrowing of the loophole - which had little impact on the home entertainment market in the UK owing to the low average price of video products - its closure will benefit UK-based brick-and-mortar retailers by reducing the advantages in pricing enjoyed by Channel Island based retailers. Online video retail in the UK accounted for around 30% of all UK DVD sales in 2010, twice the market share of the sector in other European markets.

In recent years larger well established retailers selling more than just video product, such as the UK-based supermarket giant Tesco, sought to exploit the Channel Islands' tax haven status, thus increasing the losses to the UK Treasury. The Islands will now be far less attractive to these retailers who are likely to move their businesses back to mainland UK. As a result of the removal of LVCR - which was originally introduced to ease administration costs associated with the export of the Islands' traditional crop of flowers - smaller, less mobile Channel Islands based traditional mail-order or web businesses could struggle to complete, not least because businesses in other jurisdictions (such as Switzerland, Hong Kong and the USA) will continue to benefit from LVCR when shipping to the EU.