Guernsey Residence For Individuals
Individuals who are resident and principally resident for income tax purposes in the island of Guernsey are chargeable to income tax on their assessable income wherever it arises at 20%. Those who are resident but not solely or principally resident are assessable only on income arising from sources in Guernsey except that, by concession, bank interest arising in the islands is not assessed to income tax. However significant Guernsey resident individual tax payers who are solely or principally resident are subject to tax on their worldwide income, wherever arising or accruing, subject to a cap of £110,000 per annum on the liability in respect of non-Guernsey source income plus tax on Guernsey source income at 20% or alternatively a cap of £220,000 per annum on their worldwide income. Individuals who are resident but not solely or principally resident may elect to pay the Standard Charge of £27,500.
In order to define a Guernsey source, reference needs to be made to the Income Tax Laws, Concessions and Statements of Practice.