Property Tax
A new Property Tax will be introduced in Alderney from 1 January 2021, to be paid by all property owners.
This will replace the Occupier's Rate which will no longer be due.
Guernsey Taxation on Real Property (TRP) currently paid by Alderney property owners will continue although the States of Guernsey has agreed that it will levy this as zero for Alderney properties from 2021.
The new 'Property Tax' will be based on property size and 'assessable units' in exactly the same way as the current TRP and Occupier's Rate system in Alderney. Under an agreement with the States of Alderney, the Property Tax systems will be administered by the States of Guernsey. The Cadastre Office in Guernsey will continue to administer the system for Alderney Property Tax and will maintain the Cadastre Register of Property Ownership. The Shared Transaction Services Centre (STSC) will be responsible for collection and recovery of Property Tax on behalf of the States of Alderney
What is the background to the new property tax?
The States of Alderney currently spends around £3.6m on services for the local community.
This includes waste collection and disposal, running the harbour, services at the Court, street cleaning, maintaining green spaces, planning, tourism and government administration. The money spent on these services comes from income received in Alderney including occupier's rates, property rents, harbour fees and profits from Alderney stamps and coins.
Under the terms of the arrangements agreed between Guernsey and Alderney ('The 1948 Agreement'), the States of Alderney receives a cash limited allocation from the States of Guernsey to meet any shortfall in the cost of local services. In 2020, this grant was almost £1.9m.
In addition to this, the States of Guernsey also directly funds the 'Transferred services' including Education, Health and Social Care and Police.
Following a review of the financial relationship between Guernsey and Alderney in 2016, both States agreed to some changes so that Alderney would take more control over its day to day finances by:
Introducing a new Property Tax which would replace Occupiers Rates. TRP for Guernsey would be levied as zero; and
Taking over the responsibility from Guernsey for setting rates of fuel duties and document duties in Alderney and retaining the income from these.
What are the benefits for Alderney?
The new property tax and retention of fuel and document duties will give the States of Alderney more direct control over income raised on the island. This will provide the States with more flexibility over day to day spending decisions. At present, the annual allocation from Guernsey is subject to budget pressures and the States of Alderney has no control over the TRP levy on Alderney properties. In future, we will have the freedom and flexibility to raise the income which we spend on local services with more independence.
In particular, it will provide us with a greater opportunity to increase or decrease duty levels or property tax levels for individual groups of properties to meet priorities and policy objectives.
Will Alderney be better off financially?
It is for the States Members at the appropriate time to agree tariffs which bring in enough income to meet the requirements set in the annual budget. In the short term, we anticipate that the impact of this will be neutral with no financial loss or gain to either Alderney or Guernsey. For example, in the first year of implementation, the changes could simply mean Alderney sending bills to owners to raise Property Tax at a level equivalent to the current Occupier's Rate plus TRP.
In time, the benefits are the longer-term freedoms and flexibilities that come with managing our own finances and the ability to vary property tax tariffs and duty levels which we are unable to do at the moment except through Occupier's Rates and fees and charges.
Will anything change regarding transferred services?
Not financially although there is a separate review to be carried out on the arrangements with Guernsey. The transferred services such as Education and Health are currently funded by the States of Guernsey from the pooled income collected from income tax and social security contributions. These services remain the responsibility of the States of Guernsey and this will not change as a result of the new arrangements.
What difference will it make to the way the States works?
It will put a greater emphasis on good financial management at every level of the organisation as we will have a bigger income stream to manage and control in Alderney. However, we have put in place an arrangement with the States of Guernsey to administer the new Property Tax so that we don't spend time and money duplicating systems and arrangements for collecting income that are already in place and working well.
What exactly is the new Alderney Property Tax?
The Alderney Property Tax is an annual tax based on the size of the property that you own.
Property owners and occupiers in Alderney pay two annual bills at present. Firstly, a Tax on Real Property (TRP) is paid to the States of Guernsey by the property owner on 1st January in the year of charge. In addition, the property occupier, or in the absence of an occupier, the owner, at midnight on 30th April in any year pays an annual Occupier's Rate to the States of Alderney.
Both bills are based on the size of the property and as the majority of Alderney properties are owner occupied, it means every household receives two bills each year and pays one sum to Alderney and one sum to Guernsey. However, all of the income collected by Guernsey is effectively paid back to the Alderney Government as part of an annual
grant. Introducing a single property tax will simplify this by just sending one bill to the owner with all income paid to the States of Alderney.
The new Property Tax will replace Occupier's Rate and although the States of Guernsey will still have the legal powers to raise TRP in Alderney, they have agreed that this will be Nil.
The new tax will have all of the features of TRP currently paid to the States of Guernsey and will be familiar to current Alderney property owners. A new law has been drafted and the new tax will be called Alderney Property Tax.
Who will be legally responsible for paying the Alderney Property Tax?
The owner of any property at on 1st January in the year of charge will be responsible for the charge for the calendar year in exactly the same way as for Guernsey TRP at the moment.
How exactly will my bill be calculated?
Property size measured in 'Assessable units' x Annual tariff for your property category.
This is the same as current Guernsey TRP. Every existing property in Alderney has already been measured and a record is maintained of the square metre measurement. For built property, 1 sq. m is equivalent to 1 'assessable unit' under Alderney Property Tax. Assessable units will be used to calculate your property tax bill by multiplying this by the Property Tax tariff appropriate to your property type. You may still see reference on your bill to measurements being in 'TRP Units' as this is the unit of measurement in the system.
Assessable Units: The size of a building determines the number of assessable "units" (or the "assessable unit value").
Units of Measurement: 1 square metre of built property or 50 square metres of land = 1 assessable unit.Land in Alderney is zero rated for TRP and occupier's rate purposes. This will continue with the Alderney Property Tax.
How is property measured for Alderney Property Tax?
Property size is assessed by the Cadastre Department in Guernsey and expressed as 'assessable TRP units' (1 square metre = 1 TRP/assessable unit). The Cadastre Department also determines the property category. Buildings are measured externally to the edge of the roof line using GPS (Global Positioning System) equipment and digital mapping imagery which is updated every three years.
Guidance is found in
Identification of Property Areas & Calculations [469kb], also in the downloads section of this page.
Will I pay more than I do now?
The Property Tax levels or tariffs for 2021 will be set by the States of Alderney at the end of 2020. The new tariff for 2021 will be the sum of the current TRP tariff plus Occupier's Rate tariff for the property category, plus any inflationary increase determined by the States.
To illustrate how the new arrangements will work,
When can I expect my Property Tax invoice?
Invoices will be issued annually in March.How do I pay my Alderney Property Tax bill?
A variety of payment options are available to pay the Property Tax.
These are the same as options available to pay your TRP. As the States of Guernsey will administer collection on behalf of the States of Alderney, all payments should be made to the States of Guernsey. Payments can be made:
Online at GOV.GG
By Bank Transfer
In person at the Alderney States General Office, Island Hall
(Please note opening hours on the current billing form are incorrect due to revised working arrangements at present.)By Direct Debit
By cheque payable to 'STATES of GUERNSEY'
Further details can be found here.The preferred options for most current owners are either are a single full payment or Direct Debit instalments. It is recommended that any outstanding TRP or Occupier's balances are settled before the end of the year to avoid confusion as we move to the new system.
When are Direct Debit payments due?
Direct Debit instalments are taken over 10 months from March to December. The payment date is the 28th of each month.To arrange a new Direct Debit please contact Guernsey Customer Services on 01481 223002 or fill in the form here.
Guidance for Landlords
The new Property Tax bill will be sent to the landlord as the property owner. Currently, the TRP bill is sent to the owner and the Occupier's Rate to the occupier.
Arrangements between landlord and tenants are private contract matters and it is for both parties to agree how to reflect the new property tax cost in any tenancy agreement. The time prior to implementation provides the opportunity for any changes to agreements to be managed well in advance. If no adjustments are made by landlords, they will have a greater expense and tenants will benefit from paying no occupier's rate.
The Tax Office has ruled that the Alderney Property Tax is a tax on property ownership and consistent with TRP, will not be an allowable expense for tax purposes.
Alderney Property Tax Tariffs
The value of the tariff will be determined each year by the States of Alderney as part of the States of Alderney budget process.
The tariffs are listed in the
Alderney Property Tax categories and notification of changes
Property categories
The States of Guernsey Cadastre team will continue to categorise and measure properties in Alderney.Measurement of property will continue to be undertaken by the same surveyors and each separate area of a property will be categorised in exactly the same way as now. Property owners will be advised of the unit measurement and category for a new property assessment.
Owners' duty to notify Cadastre of any changes to a property
If a change is made to a property which affects either the plan view area (the size), the property reference (the usage) or the ownership, it is the duty of the property owner (or the agent or guardian of the owner) or any life tenant, in accordance with The Alderney Property Tax Ordinance, 2020 to inform the Cadastre in writing within 28 days of the change.What sort of changes does Cadastre need to know about?
New buildings, extensions, demolitions or partial demolition. A building is constructed (or demolished) or an existing property has become larger, or smaller.
Subdivision of a single unit into multiple units. e.g. a single dwelling has been converted into flats (or apartments).
Roof space conversions. An attic area has been converted to a habitable room.
Change of use. A property (or part of it) is now being used for a different purpose.
Planning applications
New and existing planning applications are regularly monitored by Cadastre who will periodically write to property owners to check on the status of approved building works.Alderney Property Tax Appeals
The Alderney Property Tax Appeals Panel was first established in March 2021 to hear and determine appeals made in accordance with the
The Panel, whilst assisted administratively through the Policy and Finance Committee, is independent of any States' committee or body. It operates within the provisions set out in the Ordinance.
If you are dissatisfied with an Alderney Property Tax (APT) decision notified to you by Cadastre (States of Guernsey) then you should, in the first instance, ask Cadastre to review that decision.
If you are still dissatisfied after Cadastre's internal review you can then appeal to the independent body - the Alderney Property Tax Appeals Panel.
Further information on the independent appeal process, including guidance notes, is below.Additionally, the Alderney Property Tax Appeals Panel's Clerk is available to answer any questions and can be contacted in the States Office.
How to Make an Appeal
Cadastre Review
If you disagree with a relevant APT decision issued by the Policy and Finance Committee, as notified to you by Cadastre, you must write to Cadastre within 28 days of the date of the decision letter asking for the decision to be reconsidered. Important: if you do not do this within 28 days, its decision is final and cannot be appealed to the Panel. If you do ask Cadastre to review the decision, then it is required to review its decision and notify you of the result.Appeal to APT Appeals Panel
If you are then dissatisfied with the review by Cadastre, you then have 28 days from the Cadastre notification about its review to appeal to the independent Panel.
NB. You must also have gone through the above review process by Cadastre before you can make a valid appeal to the independent Panel.Click here for
If you do not appeal within the set 28 day period, you may ask the Panel for more time to present your appeal.
Click here for aCompleted APT Appeal Panel Forms must be submitted to the Clerk to the APT Appeals Panel to the following address: PO Box 1001 Island Hall, Alderney GY9 3AA, by email states.alderney@gov.gg or in person at the General Office
Important: All forms submitted to the States Treasurer's Office in Alderney must be clearly marked for the attention of the Clerk to the APT Appeals Panel c/o the States Treasurer.
*Please note: that a separate Appeal Form should be completed for each relevant decision against which you wish to make an appeal.*
Once an appeal has been registered, the Clerk will contact you to confirm the receipt of the appeal. The Chair, or deputy Chair, will then appoint members of the Panel to form a Tribunal panel and begin the process for arranging a case management meeting and a Tribunal Hearing, giving you a minimum of 28 days' notice of the date that the hearing is to be heard.
Further details of the appeals process can be found in the
What happens at a Tribunal Hearing?
Unless the Tribunal directs otherwise, a hearing before the Tribunal shall be held in public. The chair of the Tribunal will open the proceedings and will explain the procedures to be followed during the Hearing.It is usual for Cadastre or its representative to have the opportunity to speak first, calling witnesses if appropriate. You or your representative will then be asked to present your case, again calling witnesses if appropriate. Members of the Tribunal panel may wish to question either of the parties or any witnesses, and both parties will be given an appropriate opportunity to respond to whatever the other says. Both parties will also have the opportunity to give a summary at the end of the Hearing.
Guidance of Tribunal Hearings can be found inLegislation and guidance notes
The APT Appeals Panel's guidance notes under, the Alderney Property Tax Ordinance, 2020 can be viewedClick here to view
The current APT Property References and Tariffs that are administered by Cadastre are listed in the
Frequently Asked Questions
The Cadastre Department has prepared some FAQs in respect of TRP assessments. These apply equally to Alderney Property Tax as the system is the same. The FAQs can be accessed here.
What if I don't pay my Alderney Property Tax?
What if I don't pay my Alderney Property Tax?
You are legally required to pay your Property Tax and the States of Alderney will seek to recover all amounts due in any year. If you are unable to pay, you should contact Corporate Customer Services or the States of Alderney General Office to discuss your situation and what support may be available to help you.What happens if I don't pay on time?
If your property tax payment or instalment is not received as expected, we will send you a reminder.Why do you send reminder notices?
The payment of Alderney Property Tax is a legal liability on the owner and is used to pay for local services. If it is not received, the States of Alderney will not be able to meet its own expenses.What if I receive a reminder notice?
If your payment or instalment is not received within 30 days of it being due, you will receive a reminder asking you to pay the amount of arrears within 7 days.This reminder will advise you that a penalty will be applied to your account if payment is not made by the specified date.
If this payment is not received by the specified date, you will receive a Final Reminder and a penalty will be added to your account.
What if I receive a summons?
If you do not pay your Property Tax as requested in a Final Reminder, the States of Alderney will formally advise you that it will apply to the court for a summons. This shows the amount due and when the hearing will be. It will also advise you of the court costs payable.You can pay the full amount on the summons if you do not want to go before the court. We can also agree a payment arrangement with you at this stage, plus any court fees.
What happens at court?
If you do not pay the amount on the summons plus the court fees before the hearing date, your case will be taken to the court. We will ask the court to issue a Liability Order against you which enables us to collect the money from you in a number of ways. You will be charged the cost of the Liability Order as well as the court costs.You do not have to attend the court hearing if you do not wish to dispute your liability, The Liability Order can be issued if you are nor present.
Payment arrangements
If a Liability Order is granted, we would prefer to agree a payment arrangement with you rather than proceed with other recovery options. It is very important that you keep to this payment arrangement which you can pay by Direct Debit.