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Taxation

Alderney is part of the Bailiwick of Guernsey for the purposes of taxation and has a reciprocal agreement with Jersey and the U.K.

In Alderney there is:

  • NO Value Added Tax.
  • NO tax on capital.
  • NO tax on inheritance.
  • NO tax on exempt companies carrying on business outside the islands-see section Trusts/ Company Law.
  • NO tax on trusts whose beneficiaries live outside the island
  • 0% corporation tax with a few exceptions:
    - specified banking activities - 10%
    - profits derived from activities that are regulated by the Office of Utility Regulation - 20%
    - income derived from Guernsey land and buildings - 20%
  • LOW tax (20%) and generous personal allowances on income of persons who live in the island.
  • PREFERENTIAL arrangements made for captive insurance companies based in the island.
  • Professional advice from a tax consultant familiar with Guernsey/ Alderney tax laws is strongly recommended.

It should be noted that pensions and other income left in the U.K. continue to attract U.K. tax although a double taxation agreement ensures that further tax is not paid.

A flat rate of 20% is levied after personal allowances which are generous by U.K. standards.

Guernsey Income Tax

For the purposes of income tax, Guernsey and Alderney are treated as one and therefore all of Alderney's tax is administered by Guernsey.  
For further information regarding Income Tax, please click here