Wider tax reforms delayed until 2028 by parliament

Major tax reforms will not take place until 2028, a Channel Island's parliament has confirmed.

Sark's Chief Pleas said an increase in its operating costs - rising from just under £1.6m in 2020 just about £2.5m in 2026 - combined with major infrastructure projects, such as repairs to La Coupée, underlined the "need for a fair, sustainable and modernised tax system".

However, it said, following concerns raised by islanders which included affordability, privacy and the wider impact of reforms, only "limited, targeted changes" would be introduced for the 2027 tax year.

Chief Pleas added a package of reforms would be developed for 2028 after further consultation with Sark's residents.

Conseiller John Guille, Chairman of the Policy & Finance Committee, said: "Sark faces real financial pressures and significant future infrastructure needs, but we must balance those challenges with the concerns raised by residents.

"Deferring major reforms to 2028 allows us to take the time needed to get this right.

"We remain committed to a transparent process, ongoing consultation and a tax system that supports Sark's long‑term sustainability."

Changes for the 2027 include a minimum forfait threshold - a tax levied on residents who have a property available to them for at least 91 nights a year - being introduced.

Chief Pleas said Box 2 - a tax relief allowing people to pay the minimum tax if they live in a property whose owner pays the forfait - would not be abolished as originally proposed, but would be restricted to one claimant per household.

It added no changes would be made to Box 6, which exempts residents from personal capital tax if they possess a dwelling and their total assets are below £125,000.

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