Details have not yet been finalised, however it is proposed that the scheme will not be compulsory for individuals, i.e those who are self employed or non employed, however they can make voluntary contributions if they wish.

 

As an employer you will also have to auto enrol your employees in the Pension Scheme.  Unless they opt out, your company will have to pay 1% of their earnings in the first year, increasing to 3.5% over a 7 year period, and they will have to contribute 1% of their earnings in the first year, increasing up to a maximum of 6.5% over a period of 7 years.

 

Check www.gov.gg/secondarypensions to find out how it is likely to affect you.

• Complete withdrawal by 2025
• Only tax relief on the first £400,000 of your mortgage is allowable for tax
• The cap for 2019 is £8,000 per borrower

The withdrawal of allowances starts at £100,000 for 2019.  Allowances will be withdrawn at the rate of £1 for every £5 of income over the threshold.  All allowances apart from a £1,000 pension contribution will be withdrawn, in the following order :

 

• Personal allowance
• Dependent relative allowance
• Mortgage interest relief

 

If you have had all of your allowances removed in your coding notice automatically and you think you are entitled to some allowances, you need to contact the States of Guernsey Revenue Service with details of your 2020 income.

Mortgage Interest allowance cap has dropped from £25k to £15k (£30k per couple)

First £50 bank interest is now exempt (£100 per couple)

The married persons allowance is now only available if both spouses are resident in Guernsey.

Clarification on Compensatory awards made by Employment & Discrimination Tribunal for unfair dismissal confirms that they fall within the definition of ’emoluments’ and are taxable (subject to the £30k exemption for termination payments)

Income from Guernsey land and property is to be excluded from the tax cap.

For those clients with UK property owned personally or via a non UK resident Trust (and by any Company not within an ATED CGT charge), please note that Capital Gains Tax may apply to any disposals after 5 April 2015.There will be a form rebasing to the property’s value as at 5 April 2015.

Also from 1 April 2015 the annual tax charge on properties (ATED) will apply to any Company owning UK residential property where the property is valued at over £1M, as at 5 April 2012, and an ATED return will have to be filed in all cases. If any of the exemptions apply, the Return will need to claim that exemption. The Return has to be filed by 15 October and the payment of the ATED by 31 October.

The extended ATED related CGT charge will also apply to any disposals of UK property by Companies from 1 April 2015 where the property’s value was in excess of £1M as at 1 April 2012.

Please get in touch if you need specific advice and assitance with ATED Returns.