Married couples and civil partnerships to be taxed separately after States approve proposals

From later this month, Islanders will also be able to use an online a tax calculator; users can input basic information about their circumstances, see how this affects allowances they may receive and tax they may currently pay as a couple. Credit: ITV Channel TV

Married couples and civil partnerships will be taxed separately from next year after States approved proposals.

The proposals will come into force from next year and will apply to anyone who arrives on the island after this, regardless of whether they are married or single.

But the States Scrutiny Panel has argued that some lower earners would be worse off under the new proposals. The Treasury has proposed a compensation scheme but this is going to cost the government approximately £4 million a year.

671 married couples and civil partnership who elected for separate assessments for the 2020 tax year will have the option to take part in a pilot group and move to independent taxation for the 2022 tax year.

They will receive a letter asking them whether they are committing to moving towards independent taxation by Friday 29 October. The pilot will gather feedback on the process so improvements can be made ahead of the new system being used for all eligible couples in 2023.

Households will receive a leaflet through the post on Monday 20 September, which will have all the key information.

The government will be holding a series of events throughout October and November online and those who do not use the internet can get information from the library, Citizen's Advice and Parish Halls.

More details can be found here.

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