The Chief Officer of Gibraltar has announced the following changes in his 2022 Budget Address which took place on 28th of June.
Tax
The tax rates across all tax bands under the Allowance Based System and the Gross Income Based System are being increased by 2% for two years, after which time they will be lowered again.
Taxable income for Category 2 individuals will now be capped at £118,000 instead of from £105,000 with the maximum amount of tax payable increasing to £44,740.
From the 1st of July 2022, the minimum amount of tax payable in this category will increase from £32,000 to £37,000 annually and new Category 2 applicants will be need to pay tax a year in advance.
A new tax has been introduced for non-Gibraltan nationals who claim residency in Gibraltar but who are not in possession of a Category 2 or HEPSS certificate and are not in true third-party employment. They will be taxed on their full savings income, including pension income, interest income, dividend income and other passive income.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Another year is nearly over with a new one about to begin and while the financial outlook for 2019 looks unclear, one thing we can say with some certainty is that the financial markets have been anything but boring during 2018. Volatility has been at the fore, lately mainly as a result of political uncertainty in Europe and the UK, and the American/Chinese trade war.
The UK government has admitted there are not enough pension transfer specialist advisers to deal with demand, particularly in the case of more complex transfers into overseas pensions. This was the government’s response in March to a consultation launched two years ago, on whether the need to take financial advice, introduced with pension freedoms, created difficulties for overseas residents – residents such as those living in Cyprus wishing to transfer their pension savings from the UK to a qualifying recognised overseas pension scheme (QROPS).