At today’s sitting of the Legislative Council, the Income Tax (Amendment) Bill 2026, brought forward by the Chief Minister, was not passed.
Ministers today expressed disappointment that Elected Members did not pass the Income Tax Amendment Bill 2026, legislation that would have delivered the first uplift to the personal tax‑free allowance in 14 years.
Ministers recognise that many individuals and families across the island continue to face real financial pressures, particularly those on lower incomes who are most affected by rising living costs.
Ministers remain firmly committed to putting money back into people’s pockets and helping households manage the rising cost of living. The proposed amendment sought to provide immediate relief through an inflationary increase to the personal allowance, recognising the limited timeframe available for changes that must be in place for 1 April. Tax adjustments cannot be made mid‑year, and therefore the proposal represented the best possible route to offering short‑term support to the public.
At the meeting the Chief Minister highlighted that the window for implementing any changes to the tax system was exceptionally narrow. Despite these constraints, the proposal aimed to deliver a realistic and immediate benefit to taxpayers.
The Chief Minister spoke to the debate and said:
“This government wants to increase the personal allowance to £7,500. Believe me, when I say that I would have loved to be able to do that this year. But it was just not affordable. Over 20 different options were explored, but in reality, there was not enough time to be able to have a sufficiently robust assessment of the impacts of more complex options, like introducing a new tax band, or changing the higher rate of tax.”
Ministers acknowledge that there are differing views on how best to provide support and respects the role of Elected Members in this process. However, the outcome means that this opportunity to protect the real value of the tax-free allowance will not be realised this year.
Ministers remain focused on supporting residents and will continue seeking responsible and sustainable ways to ease financial pressures on households.
#StHelena #IncomeTaxAmendmentBill2026