Income tax receipts
In 2016, income tax receipts were £488 million. This was £17 million above the revised forecast.
This was primarily down to an increase in the Personal Tax accounts reflecting the strength of the economy and record employment levels.
Levels of tax exemption in 2016
|Single person (aged 65 years or over)||£15,900||-|
|Married couple / civil partnership||£23,000||-|
Married couple / civil partnership (aged 65 years or over)
Levels of tax allowance in 2016
|Child allowance (higher education)||£9,000||£6,000|
Additional allowance: for people with single-handed responsibility for children
|Wife's / civil partner's earned income allowance||£4,500||-|
2016 Budget agreed phasing out of the Standard Child Allowance and Additional Allowance for those on the Standard 20% rate over the period of the MTFP 2016-2019.
Goods and services tax (GST)
The States agreed in July 2005 to introduce a 3% broad-based GST in May 2008.The standard rate of GST was increased from 3% to 5%, effective June 2011. The full year effect on GST receipts at the new rate of 5% was first seen in 2012.
In 2016, income from GST was £85 million, almost the same as 2015.
Businesses within the financial services industry can apply for an International Services Entity (ISE) Fee as an alternative to GST. These ISE Fees contribute almost £9 million of GST revenue.
The strategic reserve
The strategic reserve is a capital safeguard against unforeseen events and economic downturn.
Figures are in £ millions and stated at market value at 31 December each year.
The stabilisation fund
In December 2006, the States agreed to establish a stabilisation fund to:
- provide protection from adverse impacts of economic cycles
- create a more stable environment with low inflation
The intention is that money is paid into the fund when the economy is growing strongly, and drawn out from the fund to support the economy when it is performing more weakly.
The fund has been used to:
- provide £44 million for the economic stimulus package (agreed by the States in 2009)
- support the Consolidated Fund in 2010 (transfer of £68 million)
- support the Cosolidation Fund during 2011 as agreed in the 2011 budget (£46 million transfer)
The stabilisation fund was fully drawn down to the consolidated fund in 2014.
Figures are in £ millions and stated at market value as at 31 December each year.