Gibraltar Budget 2024

In the Chief Minister’s budget address on 1 July 2024 various measures were introduced.  It has been noted that responsibility of the Income Tax Office have been assigned to the Honourable Minister Feetham during the current year and therefore the Chief Minister has limited himself in referring to relevant metrics and measures to be introduced.  A summary of the salient points is set out below:

Personal tax

  • Personal tax rates that previously incurred a provisional 2% increase for a two-year period and which was halved during the last budget address have now been reduced by the remaining 1% returning to 25%.

Corporate tax

  • Corporate tax rate is set to increase from 12.5% to 15%.

Minimum wage

  • This will increase by 30p per hour from £8.60 to £8.90.

Disability benefits, state & public sector occupational pensions

  • State pensions and disability benefits will increase in line with current inflation of 2.6%.

  • Full old age pension will now be £571.15 for a single person and £856.90 for a married couple.

  • Increase in public sector occupational pensions by 2%.

Social insurance

  • Social insurance caps for both employees and employers is set to increase by 5%.

Public sector fees and charges

  • As from 1 August 2024 all fees charged by any Government department, will increase in line with inflation, rounded to the nearest half point and to the nearest 50p.

Green procurement

  • An additional 50% of any cost or expense incurred in achieving net zero as part of environmental protection will be given within a tax computation subject to approval by the Commissioner of Income Tax.

  • Deduction will be capped at £10,000 per annum.

Vehicle park renewal pollution levy

  • Every vehicle over 10 years old which, is not a classic car, will be required to pay an annual pollution levy of £10 per week as from the 10th anniversary of the vehicles first registration, whether in Gibraltar or elsewhere.

  • Fee for commercial and public service vehicles of more than 8 passengers will be triple at £30 per week.

  • Fee will be applicable as from 1 October 2024.
  • Levy has been subsequently revoked by the Government and the matter will be reviewed as part of a consultation.

Import duty

  • Mild hybrid vehicles which previously attracted a 0% duty rate will now incur an import duty of 10%.

  • Full hybrid and Plug-in hybrid electric vehicles will have their import duty increased from 0% to 5%.

  • Pleasure crafts will have their import duty increased from 0% to 5%.  A cap will be fixed at £35,000, as is the case for vehicles.

  • Measures will become effective for cars bought after 1 October 2024

Special stamp duty for off plan purchases

  • A 0.5% special stamp duty will be payable on the assignment of the purchaser agreement for any off plan develop apart from those that are Government subsidised estates.

First and second time homebuyer’s allowance

  • Benefits going forward will be restricted to properties under £800,000.

Contact

For any queries or clarification please contact your usual BDO contact or alternatively, you can contact our tax director / manager:


Christian Summerfield                                    Stephanie Montegriffo
Director                                                            Senior Manager
+350 200 47300                                            +350 200 47300
Christian.Summerfield@bdo.gi                       Stephanie.Montegriffo@bdo.gi