Gibraltar: Tax measures in 2024 budget
Rate of income tax for companies would increase from 12.5% to 15%
July 1, 2024
The Chief Minister on 1 July 2024 delivered the budget address.
Tax proposals include:
- The rate of income tax for companies would increase from 12.5% to 15% (no announcement on the date of this change).
- The cap for both employee (currently £37 per week) and employer (currently £51 per week) social insurance contributions (effective from 1 July 2024) would be increased by 5%.
- The maximum effective individual (personal) income tax rate would revert back to 25%.
- An additional 50% deduction in respect of any cost or expense associated with achieving net-zero would be available, subject to the Commissioner of Income Tax considering the deduction reasonable and directly associated with achieving the net zero objective and it would be capped at a maximum of £10,000 per annum.
- Import duty on pleasure craft would increase from 0% to 5% (when the vessel has not been bought before 30 September 2024) but it would be capped at £35,000.
- New purchase agreements (e.g., off plan) and assignments would be registrable instruments and a 0.5% special stamp duty would be payable by the assignor on the assignment of the purchase agreement (apart from sales in subsidised estates).
- The first and second time home buyers' allowance would be restricted to properties under £800,000 and the equivalent of the first time home buyers' allowance would be introduced for those selling after the age of 65 and moving to smaller properties.
Further details are expected at a later date.
For more information, contact a KPMG tax professional in Gibraltar:
Darren Anton | darrenanton@kpmg.gi