A NEW tax arrangement with the UK does not mean Guernsey has thrown its doors open to HM Revenue and Customs, insist local tax experts.

Fran Snoding (pictured), director of Fortis Reads Private Clients, said that contrary to the image that some in the UK were attempting to paint, the package of measures signed off by Chief Minister Lyndon Trott on Tuesday, which also included a tax information exchange agreement, was good news for Guernsey.

‘Tax treaties are good for doing business in Guernsey and should be welcomed,’ said Mr Snoding.

‘The new revised UK treaty continues to provide the protection of the old treaty, which dates back to 1952, but now with additional benefits for Guernsey residents and also the Guernsey exchequer.

‘Prior to these revisions, the right to tax Guernsey residents who received UK sourced pensions fell to HM Revenue and Customs. The revised treaty means that the Guernsey Tax Office now has the right to tax.

‘Although the reverse applies for UK residents in receipt of Guernsey pensions, I understand the net position is predicted to be in Guernsey’s favour by £3m. and this can only be a good thing.’