Can I Claim Pension and Retirement Contributions as a Business Expense in Guernsey?
Yes, employer pension contributions to Guernsey-approved pension schemes are deductible against corporate income tax. Personal pension contributions by individuals also attract income tax relief at 20%. Guernsey has its own pension legislation separate from the UK.
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What Revenue Service, States of Guernsey says
Employer contributions to approved retirement annuity plans or occupational pension schemes registered with the Revenue Service are deductible as employer expenses. Individual contributions obtain income tax relief under Guernsey's personal tax rules up to prescribed limits. From 1 January 2026 the overall minimum secondary pension contribution under auto-enrolment is 2.5%, with the employer required to pay at least 1%. Employers submit a quarterly secondary pension return electronically within 15 days of the end of the quarter, on 15 April, 15 July, 15 October and 15 January.
When you can claim
- Employer contributions to a Guernsey-approved occupational pension scheme
- Employer contributions to a personal pension plan for a director
- Contributions to an international pension plan for internationally mobile staff (subject to approval)
When you cannot claim
- Contributions to unapproved pension arrangements
- Excessive contributions above Revenue Service limits
- Contributions to UK pension schemes for Guernsey-tax-resident individuals without specific Revenue Service clearance
- Late-return penalties on the quarterly secondary pension return
Good to know
Pro tip: Guernsey's pension regime is governed by the Retirement Annuity Trust Schemes (Bailiwick of Guernsey) Ordinance 2009. Schemes must be approved or registered with the Revenue Service. UK stakeholder pensions and SIPPs are not automatically Guernsey-approved. Seek local advice before setting up pension arrangements.
Important: All employers should now be auto-enrolling employees in a secondary pension. The employer may also choose to pay the employee share of 1.5%. Keep the scheme approval and the quarterly return confirmation with the payroll records.
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