There is no change to the corporate tax rate.
A consultation process will take place covering various aspects of the tax system including:
BEPSPillar 2 minimum tax;
Alignment of tax filing requirements with those of the Company Registrar, together with a review of payment dates for corporate tax;
The introduction of group relief; and
Deductions for the amortisation of acquired intangible assets such as goodwill.
There is a reduction of 1% for taxpayers earning below £100,000 per annum, resulting in a maximum effective rate of 26%.
Tax rates remain unchanged for those earning over £100,000, with the maximum effective rate remaining at 27%.
Duty rates for private motor vehicles are to beset to the same rates as for dealer imports.
The cap on duty for the import of petrol and diesel cars will increase from £25,000 to £35,000.
A cap of £35,000 will be introduced for duty on the importation of pleasure vehicles.
Import duty on fitness trackers, bicycles and bicycles accessories or spare parts, and on gym and fitness equipment will be reduced to zero.
Duty on tobacco will increase by 50p per carton.
The first time homebuyer allowance will increase from £260,000 to £300,000.
Stamp duty on property sales over £800,000 is to increase from 3.5% to 4.5%.
A consultation will take place as to whether to introduce stamp duty on the assignment of purchase contracts (eg off-planpurchases for new developments).
Public sector workings will receive a one-off tax free lump sum payment. Employers in the private sector can elect to make tax-free payments to employees on the same terms. These will not be a deductible expense for corporate tax purposes. The lump sum payments are as follows:
o £1,200 for a basic salary of less than below £50,000
o £900 for a basic salary between £50,000 and £75,000
o £600 for a basic salary between £75,000 and £100,000
Individuals enrolled on a gym, or contract a personal trainer who is registered with the Income Tax Office, may deduct 10% of the verified cost against their tax liability.
10% of the cost of private school tuition inGibraltar may be set off against the tax liability of a taxpayer.
A single practitioner lawyer may deduct 75% of their Legal Services Regulatory Authority fees from their tax liability.
The Commissioner of Income Tax will review the current personal tax system with a view to simplifying the rules.
The statutory minimum wage is being increased from £8.10 to £8.60 per hour.
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