Open Market tax idea dashed

Wednesday 01 February 2023

Open market residents will not be a tax target, Policy & Resources has confirmed.

The idea of an annual 1% tax based on property price was floated by businessman Guy Hands.

Signs that the suggestion would be considered by the committee caused a considerable backlash.

“With regard to the suggestion of making changes to contributions specifically made by Open Market residents, the committee is keen to confirm it does not intend to pursue this,” a P&R spokesperson said.

Pictured: P&R are working up new plans ahead of stage two of the Tax Review debate.

“The committee recognises the value of this sector of the housing market and more so, of the members of our community who live in the Open Market.”

P&R is currently drawing up an alternative to its tax package having faced considerable opposition for its move towards introducing a GST.

When States members return to debate the issue on 15 February, they will be given a choice between its original package, which P&R still prefers, and one without a GST.

“While it is engaging with States Members this week, and considering a range of revenue raising measures that could be included in the alternative instead of a GST, it is not actively looking to include measures that specifically affect the Open Market,” the P&R spokesperson said.

“It will however seek to develop alternative measures that are as fair and as progressive as possible.”

Before P&R’s statement, Economic Development President Deputy Neil Inder said he would not support any measures which would seek to tax owners of Open Market properties simply because they live in an Open Market home.

Pictured: Deputy Neil Inder wants to offer Open Market home owners confidence. 

He said that last year alone Locate Guernsey, an agency supported by his committee, worked with 46 new families relocating to the island, 13 of who also brought businesses to the island. 

Some of these people bought Open Market homes which generated income in excess of £2.3M for Guernsey in document duty, he said.

“Whatever the outcome of the Tax Review, I am determined that Open Market residents will not be unfairly penalised and will not support any measure that seeks to penalise this sector,” said Deputy Inder.

“Guernsey residents should all be prepared to make a fair contribution to any increase in taxes, each according to their means.  It is right that those who are most able to do so, should be asked to contribute more whilst those with small pensions and low incomes should not be penalised, simply because they live in an Open Market home.”