The Islands are low-tax areas and do not have high spending commitments. There is no value added tax, capital gains, gift or wealth taxes, estate duty or capital transfer tax. There are no stamp duties payable or levied on patent royalties, dividends, share and bond issues and transfers of securities.
The Islands are divided into different categories for taxation purposes, by virtue of their histories and separate legislatures. Guernsey has its own taxation laws and levies its own taxation. Jersey similarly has its own taxation laws and levies its own taxation. Guernsey at present fiscally administers Alderney. Sark has no material taxation.