Consultation on new Sark taxes approved

Residents in Sark will be asked their opinions on proposals for new taxes.

Conseillers approved plans for a consultation at their Christmas Chief Pleas meeting in 2023.

The proposals included plans for taxes on tourists, derelict buildings, seasonal workers and property sales.

Currently, there is no income or inheritance tax on Sark and the committee decided to rule out introducing them.

The special tax committee, led by Conseiller Kevin Delaney, suggested a £2 levy on people staying in hotels per night, £1 for staying in a B&B and 50p for people camping.

At the moment, the minimum personal tax people can pay for living in Sark is £525 per person.

Proposals to change the rates of personal tax will be part of the consultation.

Conseillers behind the plan suggested new bands for personal tax, so if a Sark resident spent less than 270 days but more than 180 days on Sark in the year, then the minimum personal tax payable would be increased by 500% to £2,625.

The highest new band is for residents who cannot prove that they have physically been on Sark for 90 days in the year, which increases the minimum rate by 2000% to £10,500.

The committee said: "This is punitive aimed at those who are using their Sark tax identification number to avoid paying taxes elsewhere."

Conseiller Jolie Booth expressed concerns about the changes to personal tax, which were echoed by Conseiller Ben Harris, who believed it could put people off moving to the island.

A tax on derelict buildings was described as "an emotive subject for some" as the committee recognised "sometimes the owner of a derelict property finds themselves asset rich, but cash poor, and simply does not have funds available to do up the buildings".

The committee said derelict buildings "could be registered on the cadastre by the owner and charged a percentage of the property tax that would be payable if they were habitable".

Plans for a tax on holiday and second homes will also form part of the consultation.

A seasonal worker tax of £10.10 per week was also suggested.

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