Guernsey has again shown its commitment to attract new HNWs within the 2018 Budget issued on 10th October 2017. The proposed introduction of a lower tax cap for newcomers to Guernsey giving yet again another stimulating tax based incentive.
I am both delighted and frankly amazed at the offer; which, once approved, will be effective from 2018.
By committing to spend at least £50,000 of duty buying an open market house, which is equivalent to simply spending at least £1.5m on such a property and naturally having to then incur that cost anyway, a newcomer to the island will be granted the ability to cap their Guernsey tax liability at £50,000 for up to four years. The house must be acquired within 6 months ,either before or after, the date of arrival.
This is a dramatic reduction from the longer standing caps of £110,000 and £220,000 and demonstrates the government’s consistent message to everyone with this new tax rule:
“We are open for business and want you to come and enjoy the islands fantastic benefits”
Mark Colver, Director at Grant Thornton Guernsey