Proposals to cut a property tax on local market homes in Sark and tighten recovery rules for unpaid taxes are due to be voted on by Chief Pleas next month.
One of the main proposals the Midsummer Chief Pleas will consider on 8 July is to reduce the Property Transfer Tax for local market dwellings from 7.5% to 4%.
The change would not apply to open market properties, which would remain taxed at 7.5%.
Conseiller John Guille, Policy and Finance (P&F) President, said reducing the cost of buying local market homes would “make it easier for people to buy, move, downsize or find accommodation that better suits their needs”.
Audit timing and tax recovery
Chief Pleas is also due to consider draft legislation to strengthen the recovery of unpaid property tax.
If approved, the new rules would make it easier for authorities to recover tax owed.
If a tenant or occupier failed to pay, the owner could also be pursued for the debt – reducing the risk of unpaid tax going uncollected.
The committee said the change would help ensure fairness where taxes owed were not paid and encourage responsible letting.
Conseiller Guille described the measures as “practical and proportionate”, arguing they would strengthen “the ability of Sark’s tax authorities to recover property tax”.
A related amendment would provide “clarity” about when audited accounts needed to be submitted, he said, by bringing submission forward to the Easter meeting “or as soon as practicable thereafter”.
Accounts healthier but ongoing pressures
Chief Pleas will also consider Sark’s 2025 financial statements at its Midsummer meeting.
The figures showed an improved underlying position despite an overall deficit of more than £57,000.
Sark’s total income rose more than £345,000 to over £2.38m, while its cash reserves also increased by over £138,000.
The deficit was mainly caused by £54,000 of emergency stabilisation works at La Coupée and a £177,800 accounting impairment linked to the stalled electricity project.
Officials stressed this was not a cash loss and that, without it, a surplus would have been recorded.
P&F’s Deputy President, Conseiller Natalie Tighe, said the figures showed progress but warned reserves remained below the level needed, with major infrastructure projects – including the incinerator, sewage treatment works and harbour safety – still requiring funding.
She added that while Property Transfer Tax income had been strong in 2025, it could not be relied upon as a stable long-term revenue source.
