ARS Technica claims Apple will soon take advantage of a tax loophole in the UK to provide cheaper music downloads:
Over the past two years Tesco, Asda, Britannia, HMV, Amazon and Woolworths have all set up delivery operations in the Channel Islands to exploit a law which allows retailers outside the European Union to sell goods worth less than [GBP17, which is roughly US$30] to UK consumers free from VAT.
After careful (instant?) consideration, Apple decided it sounded good to them:
Apple confirmed that it is looking at setting up a similar operation on Guernsey.
What this means to the UK digital media consumer is that they are going to save 18% on purchases, which works out to around US$0.23 per song.
However, the U.K. government is already planning to close the tax loophole. More details over here.