Sark Slashes Home Purchase Tax by Nearly Half

Proposals are being considered in Sark to nearly halve the tax on purchasing homes. Chief Pleas is set to discuss reducing the property transfer tax for local market houses from 7.5% to 4%.

This potential change is intended to improve housing affordability for residents and encourage movement within the property market. The current 7.5% rate for open market property transfers would remain unaffected.

The meeting on July 8th will also address Sark's 2025 financial statement. This statement indicates an income increase exceeding £345k, yet reports an overall deficit of just over £57k.

The 2025 financial accounts show total income of £2,381,770, an increase of £345,376 compared to 2024. However, an overall deficit of £57,022 was recorded, influenced by unexpected expenses for emergency stabilization works at La Coupee and an impairment related to the electricity project.

Despite an increase in income and improved cash reserves, officials note that the island still faces substantial essential infrastructure costs. These include needs for a new incinerator, sewage treatment, further work at La Coupée, and making the Harbour Quarry safe.

Additionally, Chief Pleas will consider clarifying the due dates for audited accounts and enhancing the tax authorities' capability to recover property tax. If agreed, property owners could be held jointly liable with possessors for unpaid property tax and penalties.