-
Sector Focus
We specialise in the investment management industry offering audit, assurance, tax and corporate recovery and liquidation services.
-
Personal Tax Services
There are many tax rules that can affect you personally and therefore which will have an impact on your personal wealth.
-
QI Compliance
Qualified Intermediaries (QI) have to take action now to perform a Certification to the Internal Revenue Service (IRS).
-
Download our tax brochures
The tax teams at Grant Thornton aim to provide the Channel Islands with a premier tax advisory service both to private clients and the business community including the investment management industry.
-
Jersey Tax Return
A secure sign in page to file Jersey Tax Returns through the Grant Thornton tax portal.
-
ESG
ESG can either be seen as a risk management tool or an opportunity, either way it is imperative to your business, whatever your size and whether you are listed or not.
-
Professional Services
Business and accounting support for professional services
-
Finance Industry
We work with a broad range of clients and their financial stakeholders, from entrepreneurs in the early days to fast growing and established businesses to public companies competing in global markets.
-
Local Businesses
Businesses come in many shapes and sizes – from innovative start-ups to long-established local businesses. But however large or small your business, the chances are you face similar challenges.
-
Corporate Insolvency
Our corporate investigation, Guernsey liquidation and recovery teams focus on identifying and resolving issues affecting profitability, protecting enterprise value and facilitating a full recovery where possible.
-
Corporate Simplification
Redundant corporate entities can over complicate group structures and waste thousands of pounds in unnecessary costs each year. 46% of the c.15,500 companies controlled by the FTSE100 are dormant and it is estimated that the average cost of administering dormant companies is between £3,500 and £5,000 per company, per year.
-
Debt Advisory
Our Debt Advisory team provides commercial and financial debt advice to corporate entities and public sector bodies in a range of sectors. Our engagements include advice on stand-alone transactions and solutions or as part of an integrated business plan, in both the project and corporate arenas.
-
Exit Strategy Services
We offer a tailored methodology designed to enable a company to be reviewed in a group context to assess ways to maximise its value.
-
Financial Restructuring
For companies challenged by under-performance we work with management teams, shareholders, lenders and other stakeholders to implement financial restructuring solutions creating a stable platform for business turnaround.
-
Strategic performance reviews
Strategic performance reviews analyse the key drivers of performance improvement. Our specialists utilise a framework to evaluate financial and operational options and to identify solutions for businesses and their stakeholders.
No more juice in the lemon
17 Nov 2020“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.
A new States and a new live presentation, which some viewers confused with a COVID update recognising that briefing tablecloth.
There were several other soundbites we can quote which he and Deputy Helyar used to sum up what we frankly utterly expected in a scene described as the world causing the Bailiwick to suffer a financial crisis. Importantly the recognition for the need to complete the fiscal review.
Deputy Helyar said he'd looked under the bonnet and found simply it’s not sustainable to continue the planned revenue expenditure as taxes cannot be expected to foot those costs. Media questioning whether this was all the previous States fault provided the honesty that the last duo had indeed too warned of what was on the horizon, merely now concertinaed because of COVID.
We’ve set out the detail below of what I have to say is the smallest by a long way of annual tax rises I’ve ever seen.
On the big picture the numbers were always going to look bad. The previous 2020 budget prediction to break even replaced with a forecast £59 million loss and a projected further £23 million loss in 2021. When combined with the ending of transfers to capital reserves also previously planned a total £170 million impact. The 2018 budget recorded projected income of some £432 million and expenditure of £378 million, so a surplus which seems a long distant memory. 3 years later and this budget has only an increased revenues to £461 million whilst costs rise to £470 million.
Interestingly among the detail two changes:
- A £3 million increase in document duty receipts apparently reflecting the current strength of the local property market or we wonder perhaps a result of the previous change to charge on property company shares.
- Also a net increase of £3million in excise duty receipts, particularly in respect of tobacco products where consumers have had limited access to duty free products.
There was always going to be the Aurigny loss just how big, we’re now told £24 million this year. Whilst we at Grant Thornton can forensically analyse and value companies, plus advise on survival plans, this has in our opinion to be a wholly community wide issue. What does the island want? We could charge every passenger a fortune or we agree we want services. Our buses run with a subsidy that’s apparently not a loss but accountants might spot it’s the same difference by another name.
Indeed moving money around different States saving jars and saying we have it in the bank or reserves to spend on capital is another accounting sleight of hand but surely one to be welcomed in the current climate when Helyar will use it to get local projects completed, Havelet slip an example being named in the presentation.
The hidden details
Oh and the details had some snippets hidden away not mentioned at the table style presentation, as we always have to find.
For instance those resident only individuals’ cap moving to £40,000 p.a. that's a 33 percent increase wow what inflation. It last increased in 2016 but by £2,500 and the same promise is again made that it won’t change for another 5 years. That still remains a 60% increase from being initially introduced in 2008 at £25,000.
Some technical rules change to help confirm an exemption regarding international pensions, and changes to better interact planned changes of family and children allowances, as well as a day’s count for those unexpectedly stuck here in the spring.
An increase to £203,000 for tax free pension lump sum.
Guernsey Budget 2021 Headlines
|
-Cost +increase in revenue |
Measure | Change | Comments |
|
-£825,000 |
Personal allowances |
Increase by £300 (2.6%) |
Means an individual whose only source of income is the full rate state pension and bank interest of less than £50 will not pay any tax. |
|
+£150,000 |
Domestic TRP |
Increase by 1.5% |
|
|
+£250,000 |
Commercial buildings and lands tariffs |
Increased by 1.5% |
|
|
Commercial offices |
Increased by 29% |
Continuation to match other office categories |
|
|
TRP for Hostelry and food outlets and self-catering accommodation |
No increase |
Frozen to assist businesses affected by the pandemic |
|
|
+£800,000 |
General office and ancillary accommodation TRP |
Increase of 29% |
|
|
+£100,000 tobacco +£225,000 alcohol +£300,000 fuel |
Alcohol, Tobacco and fuel |
RPIX increase, about 0.6p a pint, 9p a packet of cigarettes and 1.1p per litre of fuel |
|
|
+£300,000 |
Standard Charge |
Increased from £30,000 to £40,000 |
Were told applies to only 30 individuals, which we are surprised or they expect many will leave! Won’t be reviewed or increased for at least 5 years |
|
£1.3M |
Conclusion
Overall a sensible pause whilst Guernsey weathers this storm, before a new States begins its journey. We think it’s so welcoming to hear the main focus that we have committed to spend more than we can afford meaning at last perhaps the States will really grapple costs? Finally, on a personal note I do wonder how our local breweries will turn 0.6p a pint into a rounding that isn't what we'd all really want from this budget for Christmas of no increase in a pint.
