1. ITV Report

Guernsey couples could be taxed individually in future

Guernsey couples could be taxed individually in future. Credit: Andrew Matthews/PA Wire/PA Images

Guernsey couples could be taxed individually in future.

The States of Guernsey says independent taxation has been included in the final phase of the Revenue Service Transformation Programme. Which could see improved revenue services if the States approves a £12.1 million request for funding.

At the moment married couples in Guernsey use a joint taxation system.

However Deputy Gavin St Pier says the system is out of date and an embarrassment.

The current system of joint taxation for married couples is outdated and inequitable. Frankly, in 2020, it’s an indefensible embarrassment.

So I am delighted that the States of Deliberation made a decision a little while ago to implement independent taxation, in the knowledge that making the change will also align the rules around income tax with those around social security contributions, which are already gender neutral.

The reason it has taken longer than I would have liked to sort this problem is whilst it is a simple policy change, it is very complex in practice so it’s much more cost effective to do it as part of wider change programme.

– Deputy Gavin St Pier, President of the Policy & Resources Committee

The proposal will mean that thousands more people will be required to complete a Tax Return.