Guernsey: 2009 Budget Proposals – Exceptional increases in personal tax allowancesMonday, November 24th, 2008
The Minister for Treasury and Resources has issued his 2009 Budget Report and it will be debated in the States in December.
The annual Budget Report usually includes recommendations for personal income tax allowances for the tax year that is two years ahead. For example, the Budget Report in November 2007 included proposals for the personal allowances that would apply during 2009. At that time it was decided that the personal allowances for 2009 would be the same as for 2008.
There is now a change of mind and, as an exceptional measure, the proposal is for the personal tax allowances for 2009 to increase by 5.5%, based on the RPI at June 2008. The recommendations for 2009 and 2010 are as follows:
Assuming that these proposed increases are approved by the States, it means that the Income Tax Coding Notices that have been sent to taxpayers during November do not show the correct personal allowances. However, employer copies of the Coding Notices have not been despatched, allowing the correct figures to be sent to employers as soon as the increases are approved.
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