News & Updates

Budget 2018 Commentary - Personal Tax

Deputy St Pier's assertion that the budget "offers no surprises, other than pleasant ones" is unlikely to be popular with higher income earners (those earning over £138,684 currently) who will continue to see their allowances squeezed next year and in addition tax relief on pension contributions being reduced from £50,000 to £35,000. Personal allowances currently available to older residents are also being frozen. The rest of us will get an extra £500 allowance, saving £100 which we can put towards our increased fuel bills.

The 10% corporate tax rate is being extended to those who provided regulated investment management services to individual clients.

Recognizing the need to provide a stimulus to the flailing open market, a proposal to cap the tax payable by an individual moving to the island and purchasing an open market property worth over £1.5m of £50,000 is to be introduced.

There have been some technical changes to the residence rules to whom those of you who are considering becoming resident only on the island may be interested, and also to the taxation of revocable settlements for resident settlors that are worth further investigation.

And finally we are moving out of the dark ages into a system of independent taxation, a move that is long overdue for those of us who have looked after our partner’s tax affairs for years and had to fill out the spouse section of the tax return. I wonder if the tax office employees will move away from identifying themselves as Mr/Mrs/Miss in light of gender neutrality...

Chantelle Le Tissier