Chief Pleas investigating a Sark wealth tax
BBCSark's government is looking at introducing a tax on worldwide wealth, as part of efforts to raise more money for public services.
Currently there are no income, capital gains, inheritance or sales taxes. Instead services are paid for through a combination of import, property transfer and vehicle taxes.
In 2021 Chief Pleas - Sark's government - voted to review the island's tax system.
In an update from the Policy and Finance Committee (P&F) in the Chief Pleas newsletter the committee stated it planned to replace the island's current personal capital tax with a "fairer, banded, wealth-based regime."
It went on to explain that it would mean all residents aged 18 and over would be subject to the new tax, based on their worldwide net wealth, with a banded tax structure.
In the newsletter, P&F stated it aimed to "broaden the tax base" with these reforms and "create a modern framework alligned with international norms".
Some residents have told the BBC they were concerned people would move away if a wealth tax was introduced in Sark.
Proposals on taxation are expected to be discussed at the Christmas Chief Pleas meeting on 21 January, but the papers have not been submitted yet - alongside details of the proposed loan from the States of Guernsey to buy the island's power company - Sark Electricity Limited.
What is currently taxed in Sark?
Currently any property transaction in Sark incurs a property transfer tax, at the rate of 7.5% of the adjusted value of the transaction.
Personal capital tax did not apply if the value of the individual's net capital assets was £150,000 or less.
While the maximum personal capital tax payable by an individual for 2024 was £10,973.00.
It was levied at 0.44% per pound of an individual's net capital assets.
A consultation on possible tax reforms in Sark was completed by residents in 2024.
Some of the suggestions included a tax on meals and overnight stays.
Guernsey's States was currently reviewing its tax policy, with a debate on whether to introduce a goods and services tax (GST), expand taxation on companies or do both expected before the end of June.
While a debate on whether GST in Guernsey should apply to food is expected in February.
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