Independent taxation introduced in Guernsey

The States said couples would still submit their 2022 tax return jointly and submit their first individual tax returns for 2023

A change in law allowing for independent taxation will be introduced in 2023 in Guernsey.

Currently for married couples, only one partner has responsibility for managing their tax affairs.

The States of Guernsey said the change would "see both partners treated as individuals", in line with "international norms".

The Treasury lead for the Policy & Resources Committee said it was an "important" change in the tax system.

Deputy Mark Helyar said: "We're very pleased to see that the decision made by the States in 2020 to recognise all taxpayers as equal and independent individuals is now about to take effect, in line with the originally agreed timeframes for its introduction."

The States said married and cohabiting couples with children would continue to be able to share unused allowances.

"If you already have the charge of child or dependent relative allowance in your coding notice, these can also be transferred if you won't use them all, but you can't transfer any allowances for mortgage interest or personal pension payments made," it said.

Coding Notices are due to be issued in November.

The change will also bring islanders' tax affairs in line with their social insurance contributions, which are already individual.

Director of the Revenue Service Nicky Forshaw said it would receive 12,000 "new customers".

He said: "This is a very big change for us and we know some people will have questions and may need some additional support as we welcome this move to Independent Taxation.

"Our staff are ready to help answer questions, and importantly, the improvements we've been making to our online portal and digital services, as well as our technology behind-the-scenes should help make it a much smoother process than it would have been even just a couple of years ago."

The States said couples would still submit their 2022 tax return in 2023 jointly and submit their first individual tax returns for 2023 in 2024.

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