Taxation

Alderney is part of the Bailiwick of Guernsey for this purpose and has a reciprocal agreement with Jersey and the U.K.  The tax advantages of life in Alderney are:

• Low tax (20%) and generous personal allowances on income of persons who live in the Island. 
  
• No  Value Added Tax, Capital Gains Tax or Inheritance Taxes for domiciled residents

Professional advice from a tax consultant familiar with Guernsey/Alderney tax laws is strongly recommended.

It should be noted that pensions and other income left in the UK continue to attract UK tax although a double taxation agreement ensures that further tax is not paid. A flat rate of 20% is levied after personal allowances which are generous by UK standards.

Alderney Charities

Alderney charities and non-profit organizations are advised to register with the Guernsey Income Tax Authority.

The misuse of charities and non-profit organisations

Please also refere to the report on this page which provides 4 case studies on the misue of charities and non-profit organisations.