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Statement response coming soon...

The dust is continuing to settle on what was an all-encompassing first budget delivered by Rachel Reeves, which saw the most widespread changes ever to the UK taxation of UK resident non-doms (still a current term until 5 April 2025!) and the trust structures they are connected to, many of which you administer.

The Government’s economic objective is to build a strong economy and fair society, where there is opportunity and security for all... as long as you are a working person (which seems not to include employers, entrepreneurs, the middle class, the wealthy or foreigners).

It is less than two weeks now until 30 October 2024 when the UK Chancellor, Rachel Reeves, will outline Labour’s economic and fiscal plans in the 2024 Autumn Budget to Parliament.

Guernsey is a self-governing island located in the English Channel offering an excellent standard of living in addition to favourable tax rates. Guernsey does not levy capital gains tax, inheritance or wealth tax.

“We simply don’t take enough in tax to fund the public services our community demands” says Lyndon Trott, president of the policy and resources committee (‘P&R’).

Following their landslide election victory, the new Labour government will be keen to implement the policies which were included in their election manifesto and backed up by various key speeches from senior party members.

Jeremy Hunt stood up and presented his Autumn Statement with high inflation, high interest rates, lower living standards and a very sluggish economy in the forefront of everyone’s mind.

When Rishi Sunak took centre stage today to deliver the UK budget, it was notable for several reasons.

The basis period for those who are considered self-employed and non-employed is changing from 2021.

Up until 5 April 2020, non-UK resident entities, which owned UK property investments were taxable on their UK rental income under the Non-Resident Landlord (“NRL”) scheme. Overnight, from 6 April 2020, there was a fundamental shift where such entities were moved into the UK Corporate Tax (“UKCT”) system.

“You can’t ask the Guernsey people to squeeze any more out” says Peter Ferbrache in announcing no new taxes and the usual duty hikes also being kept to a small inflationary (RPIX 1.5%) increase.

The tax landscape is in a period of hyper change. At Grant Thornton Channel Islands, we are constantly looking for ways to support our clients and service providers so they remain ahead of the game with the ever changing tax legislation and practice.

The Office of Tax Simplification recently published its report on the review of Capital Gains Tax. Hear from our expert, Neil Hoolahan, Tax Director at Grant Thornton, as he shares his insight into this latest development

In August 2020, Jersey’s Treasury and Resource Minister announced a proposal to move all Jersey taxpayers to Current Year Basis (“CYB”).

In the coming months you will see a lot of activity around the Common Reporting Standard ("CRS"), Mandatory Disclosure Rules ("MDR") and the EU Directive on administrative cooperation ("DAC6") regimes in the Channel Islands.