ONE of the tiniest Channel Islands could be on the brink of introducing what would amount to a form of wealth tax, under proposals to overhaul Sark’s unusual tax system.
The small island, which has no income tax, is consulting residents on plans to reform its Personal Capital Tax, a levy intended to tax worldwide wealth, but which critics say currently allows very wealthy residents to minimise what they pay.
Under the proposals, Sark’s government, Chief Pleas, would scrap the option for residents to pay a fixed “forfait” based on property size rather than actual wealth. Instead, tax would be charged in bands linked to the value of a resident’s global assets, which means those with far greater wealth would pay more.
At present, many residents pay similar amounts of tax regardless of whether their assets are modest or run into the hundreds of millions of pounds.
Chief Pleas said the reforms would create a fairer and more sustainable system, while also helping fund major investment in ageing infrastructure across the island.
Islanders have been invited to share their views at two drop-in sessions later this month and in February.
