The principal changes for tax year 2016-17 are as follows.
5.1.1 Corporate Tax
An incentive scheme is available for business start-ups which commence between 5 July 2016 and 30 June 2017.
The business will be eligible for a tax credit equal to the tax otherwise payable up to a maximum of £50,000
over each of the first three years of trading. See further details in 5.3.18.
Telecommunication companies previously were taxable at 20% on all their taxable income; they are now taxed
at 20% on only their telecommunication services, with other taxable income being taxed at the standard rate
5.1.2 Personal tax
Gross income based system: No changes have been made to the tax bands, tax rates or allowances
available under the gross income based system.
No changes have been made to the tax bands or tax rates that apply under the allowance based system
Personal allowance and spouse allowance increased from £3,200 to £3,215
Single-parent family allowance increased from £5,264 to £5,290
“Low-income earners’ allowance” increased from £11,000 to £11,050
Medical insurance allowance increased from £5,000 to £5,020
Nursery allowance increased from £5,000 to £5,025 per child
Disabled individuals’ allowance increased from £9,000 to £9,040
Child relief increased from £1,100 to £1,105 for a first child, and from £1,250 to £1,255 for each child
Blind persons allowance increased from £5,000 to £5,020
5.1.4 Other changes
The tax amnesty announced in last year’s budget is to be re-introduced for a further six months from the date of
the 2016 Budget (5 July 2016), but with a tax rate applying of 7.5% (previously 5%). The amnesty has also been
extended to include the value of assets purchased abroad (previously the amnesty only applied to funds brought
back to, and deposited in, Gibraltar).
The following table indicates the changes made to import duties.
Spectacles, spectacle lenses and contact lenses
From 6 % / 12% to 0%
Fizzy and other soft drinks (other than fruit juices or milk-based drinks) with sugar content of above 5
grams per 100 ml; sugars, sweeteners used for sweetening drinks produced locally
From 0% to 10%
From 6% to 0%
Nappies & nappy liners for babies, sanitary towels & tampons
From 12% to 0%
Electronic equipment, propellers and related spare parts for use on boats