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RIP 99p downloads? Apps and music could be in for a price hike

RIP 99p tracks? Apps and music could be in for a price hike
Quick, buy ALL THE APPS

Hold onto your wallets - a change to UK tax law could mean that the price of apps, music and other downloads will be pushed up next year.

It's news that most of you won't be too pleased to hear, but George Osborne's latest budget strategy could mean an end to the current tax loophole which has afforded the faithful 99p music download, as The Guardian reports.

In a lesser-noticed part of the chancellor's plan, downloads will soon be taxed in their country of purchase starting January 1 2015, rather than by foreign rates.

All good things...

For the UK, that's a 20% VAT charge, and there's a good chance that it'll be us, not the companies, footing the bill.

The new policy will be better news for high street retailers though, which are disadvantaged by the current laws that let internet companies sell digital downloads through low tax countries like Luxembourg.

It was revealed that in 2012 the UK was losing over £1.6bn a year in VAT of digital services.