Now here\’s a truly inventive use of the Channel Islands and no, it\’s got nothing at all to do with tax.
The loophole allows ITV programmes to be registered for compliance purposes with a tiny franchise, Channel Television, based in Jersey and Guernsey.
About 40% of ITV shows – mostly made by independent production companies – are vetted in the Channel Islands to ensure that they do not breach broadcasting guidelines.
It means that Ofcom can levy fines against these programmes based on only the modest advertising revenue of Channel Television, rather than the £1.5 billion earned last year by ITV plc, which owns 11 of the 15 ITV regional franchises.
Very well done indeed to whichever lawyer thought that one up!