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Alderney accepts no room to split from Guernsey on GST

Alderney’s top committee has backed Guernsey’s Policy & Resources, and said the island will have to accept GST if it is brought in.

A policy letter on future tax strategy is due for debate in Q2 2026, which will consider whether to continue to progress the GST-plus package as agreed in November 2024
A policy letter on future tax strategy is due for debate in Q2 2026, which will consider whether to continue to progress the GST-plus package as agreed in November 2024 / Guernsey Press/Peter Frankland

Alderney States member Jeannie Cameron, had claimed the northern isle had the option to opt-out – but this has been refuted by the States of Guernsey and now Alderney's top politician.

‘While Alderney has a level of autonomy, and is consulted with, the final decisions are made by the Guernsey Assembly following debate in which our two representatives can make their voices heard on behalf of the Alderney Community,’ said Policy & Finance chairman Bill Abel.

‘Thereafter, the States of Guernsey will implement any new, or changes, to the Alderney and Guernsey tax system and will collect those taxes via the Guernsey systems.”

He added that were are some advantages to the implementation of the GST-plus package, including a lower rate of income tax on the first £30,000 earned.

‘In a practical sense, this means that the affected people will have a greater level of disposable income in their pay-packets.’

Guernsey’s P&R is currently looking at alternative options, including a change to the corporate tax regime. A policy letter on future tax strategy is due for debate in Q2 2026, which will consider whether to continue to progress the GST-plus package as agreed in November 2024.

‘At the present time the other tax options under investigation have yet to be presented and the timing of any consultation is at this point unknown,’ said Mr Abel.

‘There is concern that any changes to the corporate tax system may be detrimental to the Bailiwick and needs to be considered with great care, particularly in the finance sector, a fundamental driver of our economy.’

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