Income tax status change 'penny-pinching'

My wife, who is registered disabled, and myself are both almost 80 years of age, we get our state pension and a couple of small pensions which I paid in for while working in Guernsey. This all amounts to about £14,000 a year. To our disbelief this year I am now classified as a single man for income tax purposes and will be paying over £600 in tax after being married for 55 years.

We have many friends and relatives in the Channel Islands which the £600 plus would have paid for our spends etc. when we make our annual visits. We will not be coming anymore and friends and relatives will now be visiting us. This has left us with many regrets.

As you know if we had still been living or working in Guernsey I would be given the married man's allowance and not classified as a single person. The bad publicity of this scheme will and has lost Guernsey tourism many thousands of pounds as this ill-thought-out penny-pinching scheme will have many ramifications, I hope this scheme is publicised to people who are living in Guernsey or contemplating working in Guernsey that should they be married and maybe leaving one day that they will be financially worse off when taking their old-age pension.

I have spoken to the States Income Tax personnel on several occasions and they are most sympathetic to my cause and seem embarrassed to have to operate this ill-thought-out and unjust penalty on married old-age pensioners.

I would ask if the department would kindly give this letter some thought and consideration and maybe adjust the scheme or better still reinstate our marital status, thus giving Guernsey back its good name as a fair and just society.

This letter gives me much grief and sadness to write as we both feel victimised after spending very many happy and loving years of our lives in Guernsey and now being let down.

Many thanks for taking the time to read this letter and hope you may be able to help us and other people who find themselves in this very unfortunate and unjust position.

NAME AND ADDRESS WITHHELD

Editor's footnote: A spokesperson for Treasury and Resources Department replies:

'Following consideration of the department's Policy Letter on Miscellaneous Amendments to Income Tax Law, the States resolved on 24 September 2014, that a non-resident individual in receipt of Guernsey source income would only be entitled to the relevant proportion of the personal and other tax allowances applicable to single persons. This is as the principal purpose of the personal and other tax allowances is to provide relief from tax in relation to individuals residing within our island community. The effect of this decision is that with effect from 1 January 2015, if only one non-resident spouse is in receipt of a Guernsey source pension, that individual will only be entitled to the relevant proportion of a single person's allowance. If, however, both non-resident spouses each receive a pension in their own right, they are each entitled to the relevant proportion of allowances applicable to single persons. There are currently no intentions to review this recent policy change and reinstate entitlement to a married persons allowance to non-residents.'