Banking, Money and Taxes in Channel Islands
Banks have played a key role in the development of the Channel Islands as an international financial centre. These institutions represent a range of countries and include a variety of banks with head offices all over the world.
Currency in Channel Islands
The official currency throughout the Channel Islands is the pound sterling, which is divided into 100 pence. Although it’s the same unit as used in the United Kingdom, the bailiwicks of Jersey and Guernsey produce their own notes and coins. The British currency is accepted throughout the Channel Islands, Guernsey (GGP) and Jersey (JEP) pounds can’t be used outside the islands.
Notes: 1, 5, 10, 20 and 50 GGP/JEP
Coins: 1, 2, 5, 10, 20 and 50 pence, and 2 GGP/JEP
Banking in Channel Islands
The Channel Islands boasts a good selection of both local and international banks, including most of the big British banks like Barclays and Lloyds.
The range of services offered is quite diverse. Some banks provide retail services such as savings and transactional accounts, mortgages, personal loans, and debit and credit cards, while others cater to the affluent expat market with offshore investment opportunities.
ATMs are widely available on Guernsey and Jersey, often located at the branches themselves, but may be harder to find on the smaller islands.
Taxes in Channel Islands
Taxes in the Channel Islands are considered relatively low, and there is no VAT, capital gains tax or inheritance tax. This is one of the biggest attractions to expats and offshore investors. However, the laws governing tax are constantly being changed and made stricter, and it’s best for expats moving to the Channel Islands to get advice from a resident tax expert who will have access to the latest information.