Budget 2018: Personal tax allowances to rise & fuel, alcohol & tobacco get more expensive

Personal tax allowances in Guernsey could be set to rise by 5% under proposals in the Budget for 2018.

The changes will be funded by a reduction in the tax free allowance for higher earners, which President of Policy and Resources, Deputy Gavin St Pier says is part of building a ‘fairer tax structure’.

There are also a number of changes to the duty that will be paid on cigarettes, alcohol and fuel.

The Budget also recommends the introduction of a lower tax cap of £50,000, claimable for three years, for new residents in Guernsey who have paid a minimum of £50,000 in document duty on the purchase of a property on Part A of the open market.

Despite the key recommendation of the KPMG Report on Housing in Guernsey being the removal of Document Duty, there are no plans included in the budget to remove it.

The Budget also recommends allowing an extra £500,000 be spent on the management of the new Population Management Regime.

This comes alongside requests to increase funding for Public Service Reform by £750,000.