or Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. Alternatively, they are liable to Guernsey income tax on their worldwide income with allowances, reliefs and deductions (including double tax relief) available. Guernsey Overseas Aid Commission budget to reduce in 2021. Guernsey: Personal Taxation Income Tax This page was last updated on 10 January 2020. For 2020-21, the personal allowance is sticking at £12,500, so if you earn less than this, you won’t need to pay any income tax. Had his income in 2019 been £175,000, he would have had all of his personal allowance withdrawn as well as his mortgage interest and part of his pension contributions. I can't magic money out of trees unfortunately, so if I want to put up the basic allowance to try and help people in the most modest income brackets I have to be responsible and generate it somewhere. All income liable to Jersey tax less allowable expenses, pension contributions and your tax exemption threshold charged at 26% You will pay tax at the lower of the two calculations which means that your tax rate, depending on your income, will be between 0% and 20% (max). Income tax is charged at 20% on individuals' non-business income. The official website for the States of Guernsey. Guernsey income tax and Guernsey social security are administered by entirely separate departments and operated under separate legislation. Basic-rate band The basic-rate limit increases from £ Above that threshold dividends falling in the basic-rate band pay tax at 7.5%, in the higher-rate band at 32.5% and dividends that fall within the additional-rate band will be taxed at 38.1%. The standard Personal Allowance is £12,500, which is the amount of income you do not have to pay tax on. While Guernsey does levy Income Tax, it does not levy Capital Gains Tax, Inheritance Tax or Wealth Taxes. Guernsey includes all the islands in the Bailiwick, except Sark (including Brecqhou and Jethou) for income tax purposes and the income tax rate is 20%. Taking into account the frozen personal allowance , the maximum tax-free income you can receive through dividends in 2020/21 is £14,500. The Guernsey income tax year is the same as the calendar year, 1st The allowance will also remain at this level for the 2020/21 tax year. The personal income tax year is the calendar year and tax returns must be filed (either electronically or on paper) by 30 November of the year following the relevant tax year. Personal taxation. *some browsers' menu buttons may vary. It is possible for a Guernsey resident individual to elect for a cap on their income tax liability. Written Questions from States Members (Rule 14), Guernsey's "Revive and Thrive" Recovery Strategy, Code of Conduct for Members of the States of Deliberation, Affordable Housing, Benefits, Allowances & Support, Revenue Service (formerly Income Tax & Contributions), Tell Us When You Move Home or Leave the Island, general guide to Guernsey income tax [258kb], How to complete your personal 2019 income tax return [683kb], Company Interest/Foundation Form (2019 income) [497kb], Settlement/Trust Form (2019 income) [474kb], Tax Cap Return (Alderney) - 2019 income [448kb], Open Market Tax Cap Return - 2019 income [444kb], Standard Charge Return - 2019 income [334kb], How To Complete Your Personal 2018 Income Tax Return [444kb], Company Interest/Foundation Form (2018 income) [260kb], Settlement/Trust Form (2018 income) [241kb], Tax Cap Return (Alderney) - 2018 income [212kb], Open Market Tax Cap Return - 2018 income [208kb], Standard Charge Return - 2018 income [287kb], How To Complete Your Personal 2017 Tax Return [454kb], Company Interest/Foundation Form (2017 income) [268kb], Settlement/Trust Form (2017 income) [233kb], Tax Cap Return (Alderney) - 2017 income [267kb], Standard Charge Return - 2017 income [296kb], How To Complete Your Personal 2016 Tax Return [407kb], Company Interest/Foundation Form (2016 income) [263kb], Settlement/Trust Form (2016 income) [231kb], Tax Cap Return (Alderney) - 2016 income [218kb], Standard Charge Return - 2016 income [214kb], 2015 personal tax return form and notes [548kb], How To Complete Your Personal 2015 Tax Return [426kb], Company Interest/Foundation Form (2015 income) [264kb], Settlement/Trust Form (2015 income) [232kb], Company Interest/Foundation Form (2014 income) [206kb], Settlement/Trust Form (2014 income) [339kb], Company Interest/Foundation Form (2013 income) [197kb], Settlement/Trust Form (2013 income) [170kb], Trading, Profit & Loss Account (form TPLA) [100kb], Form 706 - Company Registration Form [627kb], Form 707 - Company Requesting Non Resident Status Form [617kb], Follow this link for more information about Income Tax on Pensions and Retirement, Benefits in Kind Explanatory Guide [876kb], Penalties for failure to deliver a return of income [104kb], Adjustments for living expenses (hotels and guesthouses); Annual allowances (motor vehicles) [487kb], Rental income - Guernsey property [225kb], Rental income - UK and overseas property [213kb], Income Tax for Practitioners & Technical Information, International Financial Reporting Standard (IFRS) 16 - Leases [402kb], Guidance on the Economic Substance Requirements and the implications of COVID-19 [415kb], Guidelines for requesting Mutual Agreement Procedure assistance in Guernsey [1Mb], Guernsey's Policy on Tax Information Exchange Agreements and Double Taxation Arrangements [611kb], B15 - Business expenses - use of home as an office [401kb], E48 - Employees working from home [407kb], B17 - Covid-19 - Payroll co funding and grants [412kb], C57 - Investment management services [431kb], M19 - Guernsey residents - investments in funds [425kb], R15 - Pro-rating personal and other allowances in the year of arrival in, and permanent departure from, Guernsey [449kb], M16 - Foster Carers and Community Foster Carers, Family Link Scheme, family and friends care and Residence Orders [596kb]. 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