globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload | |||||||||||||||||||||||||||
09 July 2018 Gibraltar announces 2018 budget On 2 July 2018, Gibraltar's Chief Minister, Fabian Picardo, presented the 2018 budget. This Alert outlines the key tax proposals. A measure was announced to allow companies to transfer tax losses to other companies as part of a group restructure. Previously, there was no provision for the transfer of tax losses. This would only apply where there is no change in the ultimate ownership and no change of business for a period of three years. There were no changes announced to the Gross Income Based System; the maximum effective (overall) rate remains at 25%. There were no changes announced to tax rates or to the bandings under the Allowance Based System. Inflationary increases were announced for most allowances. Taxpayers with assessable income (i.e., before allowances) of £11,200 or less will pay no tax (2017/18 - £11,150). Tax relief of up to £2,000 was announced in respect of an expenditure by an individual on a mechanism to charge electric vehicles at their home, parking space or garage. An across-the-board increase in social insurance contributions of 10% was announced. The effective date has not yet been confirmed. Social insurance contributions remain at a relatively low level, being capped at £305 per month for employee's and employer's contributions in total. The Chief Minister stated that they expect to see online facilities for tax registration for individuals, submission of tax returns and payments of tax and social insurance by the end of the year.
Measures to further encourage the purchase of fully-electric vehicles were announced, with an increase in the ''cash-back" payable to importers from £1,000 to £2,500 per vehicle. The Chief Minister's Budget Address can be accessed here. Document ID: 2018-5828 | |||||||||||||||||||||||||||
