Editing Guernsey (section)

===Taxation===
Guernsey, Alderney and Sark each raise their own taxation,<ref name="MOJ">{{Cite web |title=Background briefing on the Crown Dependencies: Jersey, Guernsey and the Isle of Man |url=https://www.justice.gov.uk/downloads/about/moj/our-responsibilities/Background_Briefing_on_the_Crown_Dependencies2.pdf |publisher=Ministry of Justice |access-date=7 February 2016 |archive-date=10 April 2016 |archive-url=https://web.archive.org/web/20160410054056/http://www.justice.gov.uk/downloads/about/moj/our-responsibilities/Background_Briefing_on_the_Crown_Dependencies2.pdf |url-status=dead }}</ref> although in 1949 Alderney (but not Sark) transferred its fiscal rights to Guernsey.<ref>{{cite act |title="The Alderney (Application of Legislation) Law, 1948 |url=http://www.guernseylegalresources.gg/CHttpHandler.ashx?id=83875 |date=22 December 1948 |access-date=30 November 2017}}</ref>

Personal tax liability differs according to whether an individual is resident in the island or not. Individuals resident in the Jurisdiction of Guernsey (which does not include Sark) pay [[income tax]] at the rate of 20% on their worldwide income, whereas non-residents are only liable on income arising from activity or ownership within Guernsey. The income tax year in Guernsey aligns to the calendar year.<ref>{{Cite web |title=Guernsey Income Tax |url=https://www.gov.gg/CHttpHandler.ashx?id=90433&p=0 |access-date=21 November 2017 |website=States of Guernsey}}</ref> All Guernsey-resident individuals are subject to an upper limit on their tax liability, which is known as the "tax cap". Individuals may elect either of the following; Tax on non-Guernsey-source income originally restricted to £110,000, plus tax on Guernsey-source income (excluding Guernsey bank interest), or Taxed on worldwide income originally restricted to £220,000, including Guernsey-source income. Income derived from Guernsey land and property is excluded from the tax cap, as from 1 January 2015, and is subject to tax at the normal rate of 20%. Only one cap applies per married couple.<ref>{{Cite web |title=2018 Tax Guide Summary – Guernsey |url=https://www.fitzroytax.com/media/1019/guernsey-taxation-a-summary-guide.pdf |archive-url=https://web.archive.org/web/20190126164429/https://www.fitzroytax.com/media/1019/guernsey-taxation-a-summary-guide.pdf |archive-date=26 January 2019 |url-status=live}}</ref> As from 1 January 2019, these tax caps have increased to £130,000 and £260,000 respectively.<ref>{{Cite web|url=https://www.pwc.com/jg/en/topics/guernsey-budget.html|title=Guernsey Budget 2019|website=PwC|accessdate=20 December 2022}}</ref> Guernsey has also introduced a new lower £50k tax cap for new residents for three years, subject to buying an Open Market Part A house with a document duty in excess of that amount, and not having lived in Guernsey or Alderney for three years prior.<ref>{{Cite web|url=https://www.gov.gg/CHttpHandler.ashx?id=117035&p=0|title=Guernsey Tax Office Tax Cap rules}}</ref>

Since 2008, Guernsey has operated three levels of [[Corporate tax|corporation tax]], depending on the source of the income.
* A 0% corporation tax rate on most companies.
* A 10% rate (income from banking business and, with effect from 1 January 2013, extended to domestic insurance business, fiduciary business, insurance intermediary business and insurance manager business).
* A 20% rate (income from trading activities regulated by the Office of the Director General of Utility Regulation, and income from the ownership of lands and buildings).<ref>{{Cite web |title=Tax for businesses, companies and employers |url=https://www.gov.gg/article/120167/Tax-for-businesses-companies-and-employers |access-date=21 November 2017 |website=Gov.GG}}</ref>

Guernsey levies no [[Capital gains tax|capital gains]], [[Inheritance tax|inheritance]], capital transfer, value added (VAT / TVA) or general withholding taxes.<ref>{{Cite web |title=Guernsey Tax |url=http://www.locateguernsey.com/your-business/tax/ |access-date=21 November 2017 |website=Locate Guernsey |archive-date=1 December 2017 |archive-url=https://web.archive.org/web/20171201033448/http://www.locateguernsey.com/your-business/tax/ |url-status=dead }}</ref> Guernsey has thus been described a [[tax haven]].<ref>{{Cite news |date=29 May 2019 |title=Channel Islands 'among worst tax havens' worldwide |language=en-GB |work=BBC News |url=https://www.bbc.com/news/world-europe-jersey-48354081 |access-date=1 August 2022}}</ref><ref>{{Cite news |date=25 March 2010 |title=Island life beckons in tax haven Guernsey |work=Financial Times |url=https://www.ft.com/content/a0af191a-3610-11df-aa43-00144feabdc0 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/a0af191a-3610-11df-aa43-00144feabdc0 |archive-date=10 December 2022 |url-access=subscription |url-status=live |access-date=1 August 2022}}</ref> In the 2011 Budget, the UK announced that it would be ending Low Value Consignment Relief that was being used to sell goods VAT free to customers across the UK, with this legislation coming into force on 1 April 2012.<ref>{{Cite web |title=Government ends exploitation of Channel Islands VAT rules |url=https://www.gov.uk/government/news/government-ends-exploitation-of-channel-islands-vat-rules |access-date=24 November 2017 |website=UK Government}}</ref> Tax revenues represent 22.4% of GDP.<ref name="gov.gg tax">{{Cite web |title=Guernsey Facts and Figures |url=https://www.gov.gg/CHttpHandler.ashx?id=104269&p=0 |access-date=28 February 2016 |publisher=States of Guernsey}}</ref>

Social Insurance Scheme payments are based on gross earnings and apply to all persons over school leaving age. Employees are subject to a rate of 6.8%, whilst the self-employed pay 11.3%. Both have upper and lower earnings limits.<ref name="GovGG1">{{cite web |title=Social Security contributions information for Class 1 employed and Class 2 self-employed persons |url=https://www.gov.gg/SScontributions |website=www.gov.gg |access-date=22 September 2022 |language=en |date=22 October 2018}}</ref> Those classed as non-employed and under pension age pay a rate of 10.7%. Other categories have different rates.<ref name="GovGG2">{{cite web |title=Social Security contributions information for Class 3 non-employed people and people over pension age |url=https://www.gov.gg/non-employedcontributions |website=www.gov.gg |access-date=22 September 2022 |language=en |date=22 October 2018}}</ref>