Guernsey, Channel Islands

Personal deductions

Mortgage interest is deductible subject to a limit of GBP 400,000 on an individual’s principal private residence in Guernsey. There is a set cap on interest relief on a Guernsey principal private residence for individuals, which is GBP 3,500. The limit on relief will be reduced gradually every year until 2027, which will be the first year without tax relief.

A rent-a-room relief is available, allowing individuals to claim an exemption of up to £10,000 of income per room per annum for a maximum of two rooms, subject to certain conditions.

Pension contributions to Guernsey-approved schemes are also deductible up to GBP 35,000 for contributions above GBP 2,500.

Unauthorised pension payments will now face a penalty charge of 50%, which would be an income tax levied against the individual who received the unauthorised payment. 

Personal allowances

Guernsey residents are currently entitled to various personal allowances. These allowances are time apportioned for resident only, non-resident, and individuals who arrive in, or depart from, the island part way through the tax year. Furthermore, the allowances are subject to withdrawal at a rate of GBP 1 for each GBP 5 of income above GBP 80,000.

Allowances for 2024/25 are as follows:

Pro-rata allowances

It has been enforced that allowances shall be pro-rated for an individual considered to be solely or principally resident in the year of arrival or departure from Guernsey based on the amount of time spent on the Island in that year of charge.

Business deductions

There are no significant business deductions allowable to the individual.