Income over £80k won't be taxed at 22%

Tuesday 07 November 2023

An attempt to try and tax any income earned over £80k at 22% was shot down during the start of the budget debate.

Deputies John Gollop and Aidan Matthews wanted to raise additional revenues for the States of Guernsey through a temporary higher rate of tax of 22% that could eventually increase to 25%.

It's understood that a letter from the Guernsey International Business Association was shared with deputies prior to debate. It raised concerns that an increase in tax might impact the "engine" of Guernsey's economy - the finance industry - as many people within that industry earn more than £80k per year.

This concern was shared by Deputy Dave Mahoney from Policy and Resources who said that neighbouring jurisdictions would be "rubbing their hands together with glee" as they listened in to the debate. 

The idea that this amendment would make Guernsey less competitive seemed to sway the vote.

This is despite deputies like Andy Taylor arguing that the amendment would only impact 7% of the island which is "a bit of a reality check".

The amendment lost 29 to 9, with two deputies choosing not to vote. 

You can read our live coverage here: https://gsy.bailiwickexpress.com/gsy/news/live-updates-states-debate-budget/

Debate on the 2024 budget continues...

Pictured top: (L-R) Deputies Gollop and Matthews.

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22% tax rate for income over £80k possible