Guernsey Press

Much debate after call for property tax

THE concept of taxing ownership or gains from second properties in Guernsey, raised on our front page last weekend, was one of those ideas that seems unlikely to get too far through the States.

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It’s also likely that the deputy who raised it, one Gavin St Pier, would also accept that his chances of making it a tax reality are slim. Maybe it was never really intended for the States, more a comment to whip up a debate.

And in that it has certainly served a purpose. Online forums have been buzzing, with senior politicians involved too. Taxing ownership of second homes in Guernsey? It is right, argue some, especially if that property is owned or bought from outside the island and rented out at what are always said to be ‘astronomical’ rates.

Is this something close to Dwellings Profits Tax, introduced to counter property speculation in the 1970s? A bid to bring it back a decade ago was blocked by Deputy St Pier and his Treasury & Resources Committee.

The debate has raised much heat over ownership of local market homes from outside the island, though those in the know have said the extent of that is overstated and don’t favour direct intervention. But we do now know that, good idea or not, it’s on the list for consideration for the 2023 Budget. This should expose whether it’s an idea to be pursued or dismissed, but the discussion may be helpful.