Guernsey, Channel Islands

Individual - Deductions

Last reviewed - 20 August 2020

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 6,500 (transferable between married couples or couples in civil partnership). The limit on relief will be reduced gradually every year until 2025, which will be the first year without tax relief. Furthermore, mortgage interest relief will be subject to withdrawal of GBP 1 for each GBP 5 of income above GBP 100,000.

Pension contributions to Guernsey-approved schemes are also deductible up to GBP 35,000 and are subject to withdrawal in the same manner as mortgage interest for contributions above GBP 1,000.

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 100,000.

Allowances for 2019/2020 are as follows:

Allowances 2019 (GBP) 2020 (GBP)
Single person 11,000 11,575
Single person aged 64 or over at the commencement of the year of charge 11,450 11,575
Dependent relative 3,550 3,750
Charge of children generally only available to lone parents (1) 7,475 3,750
Infirm person 3,550 3,750
Housekeeper 3,550 3,750

Notes

  1. The charge will not apply in relation to children born after 31 December 2020.

Pro-rata allowances

It has been recommended 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.