Guernsey:
Taxation In Guernsey - Dwellings Profits Tax
26 March 1999
KPMG
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In an attempt to contain speculation on private dwellings a tax was introduced in Guernsey in 1973. It applies to the difference between the selling price and the inflation-adjusted cost of a dwelling, allowing for expenditure on repairs, improvements or alterations. The tax is of a limited practical significance and was designed to discourage speculation in residential property. Profits from the sale of a property owned and occupied as a sole or main residence for more than twelve months are exempt. In addition the profit on the sale of any property owned for more than five years is exempt. The rate of tax is 100% of the chargeable profit. The law has been amended to prevent the avoidance of tax by individuals selling properties to a company and then selling the shares in the company.
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