Guernsey Hikes Taxes In Budget
by Jason Gorringe, Lowtax.net, London
05 October, 2016
Guernsey has announced tax rises in its 2016/17 Budget to generate a further GBP5.4m (USD6.9m) in revenue.
Personal tax measures taking effect from January 1, 2017, include a gradual withdrawal of personal income tax allowances for high earners, at a rate of GBP1 for every GBP3 that a person's income exceeds GBP138,684 a year. The personal income tax exempt threshold will rise to GBP10,000.
Domestic tax on real property and land rates will increase by 10.5 percent, while commercial tax on real property will increase by five percent.
Reforms to the document duty regime will reduce the tax paid when buying a property for less than GBP800,000. Conveyances at average house prices will benefit most from this reform, with someone buying at the median value of GBP435,000 paying GBP11,100 in document duty compared with GBP13,050. Overall the reform to the document duty regime is expected to be revenue neutral.
Gavin St Pier, President of the Policy & Resources Committee, presenting the island's Budget said: "Preparing the 2017 Budget in the context of the revenue shortfalls experienced in 2015 and 2016 has been challenging. It is therefore particularly pleasing that it has been possible to produce not only a balanced budget, but one which is also simultaneously responsible, fair, progressive and realistic."
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