Concerns raised over Budget tax changes

Friday 12 October 2018

Two tax experts have raised concerns about some of the changes proposed in the 2019 Budget.

The BDO tax team said there were concerns in particular with proposed changes to tax rates and the income tax cap.

Head of Tax, André Trebert said, “whilst many changes are to be welcomed, especially around document duty, we are concerned about the impact of the increase in the Tax Cap on those entrepreneurial individuals that Guernsey wants to attract. This measure seems strange given Guernsey’s efforts to promote itself as a stable environment in the face of uncertainty, particularly the uncertainty arising from Brexit.

"The real increase in commercial TRP is also a challenge to High Street retailers in the face of online competition”

Tax Director, Mark Savage said, “we are also worried about the increase in marginal tax rates on those earning just over £100,000 and whether these will be seen as a disincentive to entrepreneurs.

"However, some measures do provide greater certainty to businesses and their owners operating in the international environment, particularly in relation to company tax residence and the flow-through of dividends.”

The 2019 Budget can be read in full here. 

Pictured top: André Trebert and Mark Savage.