Guernsey couples to be taxed separately from 2023

Married people in Guernsey will be taxed individually from 2023, rather than filing a joint tax return. Credit: PA

Married couples in Guernsey will be taxed individually from next year after a major law change comes into effect.

Currently, one partner is responsible for managing their combined tax affairs - which is something the island's then-Chief Minister, Deputy Gavin St Pier, called an 'indefensible embarrassment' in 2020.

Guernsey's government says the move will bring the bailiwick "into line with international norms" and make a "fairer and more flexible" system.

The move to a new system means 12,000 more people will have to complete their own individual tax returns for the first time.

2022 Personal Tax Returns will be the last to be issued jointly, with individual documents being given for each partner to complete separately for the 2023 financial year.

Guernsey's Revenue Service will issue separate tax returns to married people from 2023 after a major law change comes into effect. Credit: ITV Channel

Sarah Davies from Guernsey's Revenue Service says this move will not leave anyone out of pocket.

She explained: "The current system is old, it needs to be replaced, it no longer is fit for purpose and it doesn't allow us to make the changes that we are trying to make to bring us in line with other international jurisdictions.

"Everybody has an individual personal allowance which has been in place for a number of years, therefore they'll be no change."

Jersey agreed to switch to independent taxation in 2021, meaning both islands will make the change from the 2023 financial year.

More information on what changes for married couples in Guernsey can be found here.