Guernsey, Channel Islands

Individual - Deductions

Last reviewed - 30 June 2023

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 (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 90,000.

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.

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. In addition, the Income Tax Law will be amended to close 157E pension schemes, which were introduced as exempt pension schemes in order to meet the UK changes to their Qualifying Recognised Overseas Pension Schemes (QROPS) in 2012.

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 90,000.

Allowances for 2022/23 are as follows:

Allowances 2022 (GBP) 2023 (GBP)
Single person 12,175 13,025
Dependent relative 3,950 4,225
Charge of children generally only available to lone parents  8,275 8,850
Infirm person 3,950 4,225
Housekeeper 3,950 4,225

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.