An early Christmas present from the UK Government...

THE UK Government’s response to proposed tax changes on high- value property is being seen as ‘better than expected’ in Guernsey.

Chancellor of the Exchequer, George Osborne, left, with Chief Secretary to the Treasury, Danny Alexander, leaves the Treasury to deliver the half-yearly budget statement to Parliament in London. (PA Pictures
Chancellor of the Exchequer, George Osborne, left, with Chief Secretary to the Treasury, Danny Alexander, leaves the Treasury to deliver the half-yearly budget statement to Parliament in London. (PA Pictures

THE UK Government’s response to proposed tax changes on high- value property is being seen as ‘better than expected’ in Guernsey.

It had been feared that the proposed measures would have a significant impact on Guernsey structures set up to hold high-value property in the UK.

Many might have been wound up if HM Treasury proposals to introduce stamp duty land tax and capital gains tax charges on residential property worth more than £2m. and ‘enveloped’ in offshore structures had been implemented as planned.

However, draft legislation for the annual residential property tax has been broadly welcomed in the island. Some of the proposed changes have been relaxed, with exclusions to property properly let as a business. Owner-occupiers who hold the property in an offshore structure will, however, be caught as the proposals now stand.