Politicians voted through a tax reform package on Wednesday, including a tax cut for islanders – and no GST.
No, we’re not talking about the States of Guernsey, but its smaller cousin – the Chief Pleas of Sark.
Conseillers voted to reduce Property Transfer Tax for locals, alongside a suite of financial measures aimed at easing the burden on local residents, tightening tax loopholes, and approving the island’s latest financial statements.
Housing market boost
In a major win for resident islanders, Chief Pleas slashed the Property Transfer Tax for local market dwellings from 7.5% to 4%.
The higher 7.5% rate will remain firmly in place for open market property transfers.
The Policy & Finance Committee (P&F) hopes the 3.5% reduction will slash transactional costs, making it significantly easier for locals to buy, sell, downsize or relocate.
Conseiller John Guille, P&F Chair, said the move was “really important” for local residents and families, as it would “make it easier for people to buy, move, downsize or find accommodation that better suits their needs”.
Closing tax loopholes
It wasn’t just tax cuts on the agenda; Chief Pleas also approved a new ‘projet de loi’ – or bill – to strengthen the recovery of unpaid property taxes.
Under the amendment, property owners can now be held jointly liable alongside tenants for any unpaid property taxes and penalties.
P&F described it as a “fair” measure to ensure compliant taxpayers don’t carry the burden of non-payment.
Additionally, politicians updated guidelines to allow modern, complex audits and more flexible deadlines, meaning accounts will be presented at Easter or as soon as practicable.
Income up and deficit down
The tax changes coincided with the approval of Sark’s 2025 Financial Statements, which revealed a strengthening underlying financial position.
Total income rose to more than £2,380,000 and cash reserves increased by over £138,000.
Sark’s accounts showed a smaller headline deficit than the previous year, at just over £57,000 – which was due to emergency works at La Coupée and a technical write-down for the island’s electricity project.
Despite the positive influx of cash – boosted by an unusually strong year for property transfer taxes – officials warned that the revenue could not be relied upon annually.
Deputy Chair of P&F, Conseiller Natalie Tighe, stressed that the island still faced “significant infrastructure challenges”.
