New Guernsey Tax Measures Help Banks, HNWs

Stephen Harris

10 July 2006

Guernsey's parliament has passed a raft of tax changes including the capping of personal tax at £250,000 on non-Guernsey income and a zero rate of corporate tax, except for specific banking activities which will be taxed at 10 per cent. Under the proposals, Guernsey residents will continue to pay tax at 20 per cent on assessable income. Guernsey-resident shareholders will only be taxed on distributed company profits. Wealth taxes such as inheritance tax and capital gains tax will not be introduced in the island. "Importantly this package has the support of not just the finance industry but also the much wider business community. The measures reinforce the message that Guernsey is very much open for business and welcomes high net worth individuals," said Peter Niven, chief executive of GuernseyFinance.