Proposal to reduce property transfer tax to 4%

The tax on buying homes could be almost halved if proposals are agreed.

Chief Pleas has been asked to consider reducing the property transfer tax on local market houses in Sark from 7.5% to 4%.

The change has been proposed in a bid to make homes in the island more accessible and affordable for residents and to support movement in the housing market. The current 7.5% rate for open market property transfers would remain in place.

Chief Pleas is due to discuss the proposal on 8 July, when they will also consider the 2025 financial statement which shows an increase in income of more than £345k and an overall deficit of a little more than £57k.

The financial statement shows the total income for 2025 was £2,381,770, which was £345,376 higher than in 2024 and £167,191 above budget with cash reserves having increased by £138,194.

The accounts report an overall deficit of £57,022 for 2025 which reflect £54,230 of unforeseen expenditure on emergency stabilisation works at La Coupee and a £177,873 impairment relating to the electricity project.

Deputy chair of the Policy and Finance Committee conseiller Natalie Tighe said the spend must be recognised as an expense rather than an asset as the project was not currently being progressed.

She said Sark's income had increased, ordinary operations had produced a surplus and cash and liquid reserves had improved during 2025.

"That is a positive and important indicator of financial stability, but it does not mean the island has all the money it needs," she added.

"While the improvement in cash reserves strengthens resilience, reserves remain below where they need to be.

"Sark still faces major essential infrastructure costs, including a new incinerator, sewage treatment, further works at La Coupée, and making the Harbour Quarry safe."

At the meeting on 8 July Chief Pleas is also due to consider clarifying when its audited accounts are due and strengthening the ability of Sark's tax authorities to recover property tax.

Should the second amendment be agreed, the owner of real property may be made jointly and severally liable with the possessor for unpaid property tax, together with any related penalty.

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