Gibraltar Announces Changes To 'Qualifying Individuals' Tax Rules

by Robert Lee, Tax-News.com, London

09 March 2004

Following the completion of a consultation with the private sector, the government of Gibraltar has announced changes to the Category 2 and high-net-worth individual schemes from the start of the new tax year commencing 1 July, 2004.

The changes will mean that the maximum tax payable by Category 2 and HNWI will increase from £10,000 per year to £14,000 per year. Also, the maximum level of assessable income attributable to Category 2 individuals under the 1999 rules and HNWI under the 1992 rules is to be raised from £45,000 to £50,000.

In addition, transitional measures have been put in place that will ensure the new provisions will only be triggered after the second anniversary of the status being applied to Category 2 individuals. All new applications following the introduction of the increased rates will fall under the new rules.

Meanwhile, the application fee, which has stood at £500 since 1992, is being raised to £1,000.

Tax status certificates, which previously had no expiry date, will now be issued for a period of three years. However, there will be no need to reapply as a fresh certificate will be issued once the authorities receive a declaration from the individual that they are compliant with the tax rules.

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