Since 2023, in most cases, the first £500,000 of a property purchased by someone moving from a larger home has been free of document duty, with maximum relief up to £13,750.
Policy & Resources has proposed continuing with the scheme throughout 2027, and deputies are expected to back the recommendation at the end of the budget debate today.
It said that up to 5% of transactions were taking advantage of the relief, although it was not possible to know how many would have gone ahead anyway even if normal rates of document duty had been charged.
The States backed an amendment yesterday proposed by Forward Guernsey leader Gavin St Pier which asked for agreement that the relief would not continue into 2028. He said that ‘no compelling case had been presented’ to maintain it, but did not rule out that one might be in the next 12 months.
‘This will give ample time, if they see fit, for P&R or the Housing Committee to evidence, articulate and present the policy rationale for extending this relief into 2028 and beyond.’
Some members expressed surprise when P&R said it was happy to support the amendment, albeit two of its members later abstained as it was carried by 23 votes to 10.
Meanwhile, P&R looks set to be directed to work with the Housing and Economic Development Committees on an investigation into increasing document duty rates by at least one percentage point for property transactions valued at more than £2.5m. and introducing a new rate band for those above £10m.
The direction, contained in an amendment proposed by Deputy David Goy, which was carried by 33 votes to six, required P&R to include detailed proposals for such changes in the 2028 budget this time next year.
All amendments carried during the first three days of the 2027 Budget debate face final votes at the end of general debate today.
But one amendment which will not be carried into the final propositions was Deputy Andy Sloan’s attempt to introduce a new tax allowance for taxpayers with responsibility for children, as part of wider tax reforms expected in 2029, which was defeated 18-19 late yesterday.
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