Business panel: What do I need to do having moved here?
I HAVE just moved to Guernsey from the UK. What do I need to do?
Russell Morgan, tax manager, BDO Guernsey, replies:
NEW ARRIVALS to the island must register with both the States of Guernsey income tax and social security departments.
There is a flat rate of income tax for individuals of 20% after deduction of a personal allowance. Unlike in the UK, there are no inheritance, wealth or capital gains taxes. There are also no value-added or goods and services taxes. Certain tax advantages may also be available to new residents depending on their specific circumstances.
To register for income tax, it will be necessary to complete a ‘New Arrivals’ form. This can be completed online, downloaded from the States of Guernsey website (www.gov.gg), or is available from Edward T Wheadon House, Le Truchot, St Peter Port.
Individuals should register with social security services within 26 weeks of arriving on the island, but if you are already employed you should register immediately. Contributions are payable by any individual who is resident in the island, with rates varying from 3.4% to 11% depending on the age of the individual and whether employed, non-employed or self-employed. There is an upper income limit, currently £142,896, which applies to all classes of contribution.
A registration form can be downloaded from the States of Guernsey website. The completed form must be returned to Edward T Wheadon House. Registration with social security is compulsory with contributions providing insurance protection, pension benefits and the entitlement to claim various other benefits.
One such benefit is the ‘health benefit’, which is a grant paid towards the cost of medical consultations with an approved doctor in the surgery, at home and at the Accident & Emergency Department of the Princess Elizabeth Hospital.
Individuals without a health benefit card must pay the full cost for all medical treatment (the grant can be reclaimed if the individual is entitled to one).
For more information, contact a member of BDO’s tax team.