Taxation (Land
Transactions) (Jersey) Law 2009
A LAW to provide for the taxation of
the issue or transfer of shares, ownership of which confers a right of
occupation of land, for the taxation of a change in a declaration of the trusts
on which such shares are held, and for the taxation of any lending connected
thereto, where the transfer, declaration or lending is effected otherwise than
by contract registrable in the Public Registry of Contracts; and for connected
purposes
Commencement [see endnotes]
1 Interpretation
(1) In this Law, unless the
context otherwise requires –
“1961 Law”
means the Income
Tax (Jersey) Law 1961;
“Commissioners”
means a Commission of Appeal constituted in accordance with Article 17(4);
“Comptroller”
has the same meaning as in the Revenue
Administration (Jersey) Law 2019;
“due
date”, in relation to a transaction, means the 28th day following the day
on which the transaction takes place;
“equity
capital”, in relation to a company, includes all shares, stock and scrip
whether registered, inscribed or bearer which, other than by way of a fixed and
predetermined right to interest and repayments of subscribed capital at par,
entitles the owner to any variable right of participation in the
company’s profits, whether by way of dividend, bonus, conversion or
distribution on winding up;
“first-time
buyer” means a person on whom a right of occupation of land is conferred
and who satisfies all the conditions to be satisfied by an occupier under
paragraph 4 of the Schedule for the rate of LTT set out in
sub-paragraph (3) of that paragraph to apply;
“LTT” means
the land transaction tax imposed by Article 2;
“LTT receipt”
means a receipt issued under Article 9;
“Minister”
means the Minister for Treasury and Resources;
“occupier”
means –
(a) in relation to a transaction described in
Article 3(1)(a), the transferee of the share;
(b) in relation to a transaction described in
Article 3(1)(b), the person for whose benefit the share is held;
“prescribed”
means prescribed by Order made by the Minister;
“security
interest” means, as the case requires, a continuing security interest to
which, as referred to in Article 1A of the Security
Interests (Jersey) Law 1983, that Law applies or a security interest
within the meaning of the Security
Interests (Jersey) Law 2012, and “security agreement” and
“secured party” have corresponding meanings;
“share”
includes stock and all other subdivisions of equity capital of a company;
“transaction
to which this Law applies” shall be construed in accordance with Article 3;
“transfer”, in
relation to a share, includes every dealing or transaction, whether by the
issue of shares, the placement of shares, the grant or take up of any rights,
the exchange of shares, the conversion of shares, the grant or exercise of an
option or other means howsoever whereby equity capital undergoes a change of
beneficial ownership or proportion of ownership, or a change occurs in the
entitlement or potential entitlement of any person to a share in the
distribution of a company’s profit or capital;
“value”, in
relation to a transaction to which this Law applies, means its value determined
in accordance with the Schedule.[1]
(2) In
this Law, a reference to the creation of a security interest includes a further
advance of money secured by an existing security agreement, and a reference to
a person becoming a secured party includes a reference to a person making a
further advance which is secured by an existing security agreement.
(3) In
this Law, a reference to a person connected, or not connected, with another
person shall be construed in accordance with Article 3A of the 1961
Law.
2 Land
transaction tax
A tax, to be known as
“land transaction tax”, shall be charged and due, in accordance
with this Law, on transactions to which this Law applies.
3 Transactions
to which this Law applies
(1) This
Law applies to the following transactions –
(a) the transfer to a person of any share,
ownership of which, by virtue of the articles of association of the company in
which the share is held, confers a right of occupation of land in Jersey;
(b) a declaration that a share described in
sub-paragraph (a) is held on trust for the benefit of a person, or an
amendment to such a declaration substituting the person for whose benefit the
share is held;
(c) the creation of a security interest,
pursuant to a security agreement, in any share described in sub-paragraph (a).
(2) For
the purposes of paragraph (1), in determining whether a right of
occupation is conferred, there shall be disregarded any lease or tenancy or
other interest in the land to which the right of occupation is subject and any
restriction or requirement under Part 5 of the Control of
Housing and Work (Jersey) Law 2012.[2]
(3) The
States may, by Regulations, specify transactions to which this Law does not
apply.
4 Duty
to deliver statement and pay LTT
(1) The
occupier, in relation to a transaction described in Article 3(1)(a)
or (b), or the secured party, in relation to a transaction described in
Article 3(1)(c), shall deliver to the Comptroller, in respect of the
transaction –
(a) a statement, accompanied by such documents
or copies of documents as may be required, and containing –
(i) the prescribed
information, and
(ii) a
declaration by the person delivering the statement that it is, to the best of
the person’s knowledge, information and belief,
true and correct; and
(b) the amount of LTT charged and due on the
transaction.[3]
(2) The
statement shall be delivered –
(a) by any means of electronic communication, as
defined by the Electronic
Communications (Jersey) Law 2000; and
(b) no later than the due date.[4]
(3) [5]
5 Delivery
of statements in pursuance of notices
(1) A
notice served by the Comptroller pursuant to Article 16 of the 1961
Law may, in addition to the particulars that may be required pursuant to that
Article, require a person to provide a statement of the following
particulars –
(a) whether, during the period specified in the
notice, the person has become, or ceased to be, an occupier, by virtue of a
transaction described in Article 3(1)(a) or (b);
(b) whether, during the period specified in the
notice, a person has become a secured party, by virtue of a transaction
described in Article 3(1)(c).
(2) Where
a notice requires a person to provide a statement of the particulars described
in paragraph (1), the notice may further require the person to provide a
statement of the following particulars of any transaction to which this Law
applies which is thereby disclosed –
(a) a description of the land sufficient to
identify it;
(b) the date of the transaction;
(c) the value of the transaction;
(d) the number of the LTT receipt issued in
respect of the transaction.
(3) The
Comptroller may serve notice on a person under Article 16 of
the 1961 Law for the purpose of obtaining the person’s
statement containing the particulars mentioned in this Article notwithstanding
that the person is not chargeable under the 1961 Law.
(4) The
Comptroller may serve notice on a person under Article 16A of
the 1961 Law requiring the person to furnish documents in support of
a statement of the particulars mentioned in this Article notwithstanding that
the person is not chargeable under the 1961 Law.
(5) [6]
6 Value
of transaction and amount of LTT charged
(1) The Schedule has effect
to provide for the determination of the value of a transaction to which this
Law applies and to specify the amount of LTT charged and due on it.
(2) The States may, by
Regulations, amend the Schedule.
7 Late
payment surcharge
(1) Where
LTT in respect of a transaction to which this Law applies is not paid on or
before the due date by the person required to comply with Article 4, that
person shall be charged with an amount of LTT (hereafter referred to as the
“surcharge”) in addition to the LTT charged and due on the
transaction.
(2) The
surcharge shall be 10% of the LTT specified in the Schedule in respect of the
transaction.
(3) Notwithstanding
paragraph (1), the Comptroller may waive or reduce payment of the
surcharge in any case where –
(a) failure to pay the LTT charged and due in
respect of the transaction on or before the due date is caused by the action of
a person not connected with the person required to comply with Article 4
and the failure is remedied without unnecessary delay; or
(b) the Comptroller is satisfied that death,
serious illness or other grave and exceptional circumstance prevented payment
on or before the due date.
(4) The
Comptroller shall issue a written notice to a person of his or her liability
under paragraph (1).
(5) A
person may, within 40 days of the issue of a notice under paragraph (4),
apply to the Comptroller, in writing, for a waiver or reduction under paragraph (3).
(6) Where
a person applies under paragraph (5), the Comptroller shall give notice to
the person of whether or not he or she has waived or
reduced the person’s liability.
8 Reduction
or remission of LTT
(1) Notwithstanding
Article 6 but subject to Article 14, the Comptroller may reduce or
remit the amount of LTT charged on a transaction to which this Law applies in
any case where it would, in his or her opinion, be just to do so.
(2) Notwithstanding
Article 18, there shall be no right of appeal against a decision of the
Comptroller under paragraph (1).
8A Reduction
of LTT where land transaction confers right of occupation under approved
Assisted Ownership Scheme[7]
(1) Where
a transaction under Article 3(1)(a) confers a right of occupation of land
on a first time buyer under an Assisted Ownership
Scheme and the conditions set out in paragraph (2) are met, the rate of
LTT chargeable to an occupier is that under paragraph 4(3) of the
Schedule, calculated as if the affordable price were the gross value of the land.
(2) The
conditions are that the Assisted Ownership Scheme has been approved by the Minister
for Housing and –
(a) the
land has been allocated to the occupier through the Affordable Housing Gateway
administered by the Minister for Housing; or
(b) the
Scheme has been approved by the Minister for Treasury and Resources.[8]
(3) The
affordable price is the proportion of the gross value of the transaction that
is funded by the occupier, whether or not the funding
involves a security agreement.
9 Issue
of LTT receipt
(1) Upon
delivery of a statement and LTT under Article 4 to the satisfaction of the
Comptroller, he or she shall issue an LTT receipt in respect of the transaction
to the person delivering the statement.
(2) An
LTT receipt shall be marked with a unique number.
(3) An
LTT receipt shall contain the prescribed particulars and be in the prescribed
form.
10 Duty
to keep records
(1) An
occupier or secured party shall –
(a) keep such records as may be needed to verify
the information required to be contained in a statement delivered under Article 4
or 5;
(b) preserve those records in accordance with
this Article.
(2) The
records shall be preserved for the period of 6 years following the date of the
transaction.
(3) The
records required to be kept and preserved under this Article
include –
(a) relevant documents relating to the
transaction, in particular, any agreement, declaration or other instrument and
any maps, plans or similar documents relating to the land to which the
transaction relates;
(b) records of relevant payments, receipts and financial arrangements.
(4) The
duty under this Article to preserve records may be satisfied by the
preservation of the information contained in them.
(5) Where
information is preserved under paragraph (4), a copy of any document forming
part of the records is admissible in any proceedings before the Commissioners
to the same extent as the records themselves.
11 Power
of Comptroller to make assessment of LTT
(1) Where
it appears to the Comptroller that a transaction to which this Law applies has
taken place, but Article 4 has not been complied with, the Comptroller may
make an assessment, on the person required to comply with Article 4, of
the LTT charged and due on the transaction.
(2) If
the Comptroller is of the opinion that the main purpose, or one of the main
purposes, of a transaction, or a combination or series of transactions, is the
avoidance, or reduction, of the liability of any person to LTT, the Comptroller
may, subject as hereinafter provided, make such assessment or additional
assessment of LTT on that person as the Comptroller considers appropriate to
counteract such avoidance or reduction of liability:
Provided that no
assessment or additional assessment shall be made under this paragraph if the
person shows to the satisfaction of the Comptroller either –
(a) that the purpose of avoiding or reducing
liability to LTT was not the main purpose or one of the main purposes for which
the transaction, or the combination or series of transactions, was effected; or
(b) that the transaction was a bona fide
commercial transaction, or that the combination or series of transactions was a
bona fide combination or series of transactions, and
was not designed for the purpose of avoiding or reducing liability to LTT.
(3) Where
the Comptroller raises an assessment of LTT under this Article, the LTT shall
be payable within 28 days of the date of the assessment.
12 [9]
13 Power
of Minister to issue directions regarding the reduction or remission of stamp
duty or LTT
(1) The
Minister may issue directions –
(a) to the designated officer, regarding the
exercise of the discretion conferred by Article 6 of the Stamp Duties and
Fees (Jersey) Law 1998, in the case of an acknowledgement of debt
document, a contract affecting immovable property or of a simple conventional
hypothec, or in the case of an oath leading to a grant of probate or letters of
administration;
(b) to the Comptroller regarding the exercise of
the discretion conferred by Article 8 of this Law.
(2) The
designated officer and the Comptroller shall have regard to any directions
issued under paragraph (1).
(3) In
this Article, “designated officer” has the same meaning as in the Stamp Duties and
Fees (Jersey) Law 1998.
14 Proceedings
for recovery of LTT
(1) Proceedings
for the recovery of unpaid LTT may be instituted by the Treasurer of the States
at any time after the expiry of the period described in Article 4(2) or
11(3), as the case requires.
(2) Article 43
of the 1961 Law shall apply where judgment has been obtained for the
payment of LTT by an individual as it applies where judgment has been obtained
for the payment of arrears of income by an individual.
(3) Article 44
of the 1961 Law shall apply for the purposes of the recovery by legal
process of LTT as it applies for the purposes of the recovery by legal process
of income tax.
15 Offences
(1) A
person who fails, without reasonable excuse, to comply with Article 4
shall be guilty of an offence and liable to imprisonment for a term of
6 months and to a fine of level 3 on the standard scale.
(2) If
a person delivers a statement under Article 4 which he or she knows to be
false or misleading in a material particular or delivers a document or copy of
a document under Article 4, knowing it to be false or misleading, he or
she shall be guilty of an offence and liable to imprisonment for a term of
12 months and to a fine of level 3 on the standard scale.[10]
16 General
provision as to offences under the
Law
(1) A
person who –
(a) aids, abets, counsels
or procures the commission of an offence under any provision of this Law (a
“principal offence”); or
(b) conspires, attempts
or incites another to commit a principal offence,
shall also be guilty of
the offence and liable in the same manner as a principal offender to the
penalty provided for the principal offence.
(2) A
person alleged to have committed an offence by virtue of paragraph (1)
shall be triable in the same manner as a person would be tried for the
principal offence.
(3) Where an offence
against any provision of this Law committed by a limited liability partnership
or body corporate is proved to have been committed with the consent or
connivance of, or to be attributable to any neglect on the part of –
(a) a person who is a
partner of the partnership, or director, manager, secretary
or other similar officer of the body corporate; or
(b) any person purporting
to act in any such capacity,
the
person shall also be guilty of the offence and liable in the same manner as the
partnership or body corporate to the penalty provided for that offence.
(4) Where the affairs of a
body corporate are managed by its members, paragraph (3) shall apply in
relation to acts and defaults of a member in connection with his or her
functions of management as if he or she were a director of the body corporate.
17 Right
of appeal
(1) Any
person aggrieved by any decision of, or assessment made by, the Comptroller
under this Law shall be entitled to appeal to the Commissioners, on giving
notice in writing to the Comptroller, within 40 days of the notice of such
decision or assessment.
(2) Without
prejudice to the generality of paragraph (1), any person who is aggrieved
by any assessment or additional assessment made on the person under Article 11(2)
shall be entitled to appeal to the Commissioners on the ground –
(a) that the avoidance, or reduction, of the
liability of that person to LTT was not the main purpose, or one of the main
purposes, of the transaction, or the combination or series of transactions;
(b) that the transaction was a bona fide
commercial transaction, or that the combination or series of transactions was a
bona fide combination or series of transactions, and was not designed for the
purpose of avoiding or reducing liability LTT; or
(c) that the person has been overcharged by the
assessment or additional assessment.
(3) Notwithstanding
the time limit specified in paragraph (1), if it is shown to the
satisfaction of the Comptroller that, owing to absence, sickness or other
reasonable cause, any person has been prevented from appealing within the time
specified, the Comptroller may admit the appeal if notice of it is given to him
or her without unreasonable delay.
(4) A
Commission of Appeal must be constituted under Article 5 of the Revenue
Administration (Jersey) Law 2019 for the purpose of hearing appeals under
this Law.[11]
(5) The
following provisions of the 1961 Law shall apply to an appeal under
paragraph (1) as they apply to an appeal under Article 27(1) of that
Law –
(a) Article 27(2);
(b) Article 28(1) and (2);
(c) Article 29;
(d) Article 29A;
(e) Article 31, as if the particulars that
may be demanded are particulars of the transaction to which the appeal relates,
and any related transaction;
(f) Articles 32 to 36.
18 Correction
of error in LTT receipt
The Comptroller may
re-issue an LTT receipt upon the return to him or her of the receipt previously
issued, if he or she is satisfied that there is an error in, or omission from,
that receipt and as to the manner in which the error
or omission is to be made good.
19 Issue
of replacement LTT receipt
(1) Any
person may apply to the Comptroller for the issue of a replacement for an LTT
receipt that is lost, destroyed or damaged.
(2) The
Comptroller shall issue a replacement LTT receipt, upon an application made
under paragraph (1) and upon payment of the prescribed fee, if he or she
is satisfied that the original receipt or certificate is lost, destroyed or damaged.
20 Orders
The Minister may, by
Order –
(a) prescribe
any matters that shall or may be prescribed under this Law;
(b) make
provision, for the purposes of this Law, as to the date a transaction takes place;
(c) prescribe
the manner in which a copy of an LTT receipt shall be
certified.
21 Citation
This Law may be cited as
the Taxation (Land Transactions) (Jersey) Law 2009.
Schedule[12]
(Article 6)
Value of transaction AND
RATE OF LTT APPLICABLE
1 Interpretation of Schedule
In this
Schedule –
“amount
secured” means the amount advanced by a secured party, such amount being
secured by a transaction to which Article 3(1)(c) applies;
“gross
value”, in relation to land, means its market value.
2 Basic amount charged on the value of a
transaction described in Article 3(1)(a) or (b)
(1) Except as otherwise
provided in the following provisions of this Schedule, LTT shall be charged on
the value of a transaction described in Article 3(1)(a) or (b) at the rate
of £90 plus, the amount found in accordance with
Table A (in the case of land used for non-domestic purposes) or, as the
case may be, Table B (in the case of land used for domestic
purposes) –
Table A
Land used for
non-domestic purposes
|
Value of the transaction
|
Variable element of tax
|
|
(i) does
not exceed £50,000
|
50p each £100 or part of £100 subject to a
minimum of £10
|
|
(ii) exceeds £50,000
but does not exceed £300,000
|
£250 in respect of the first £50,000,
plus £1.50 for each £100 or part of £100 in
excess thereof
|
|
(iii) exceeds £300,000
but does not exceed £500,000
|
£4,000 in respect of the first £300,000,
plus £2 for each £100 or part of £100 in
excess thereof
|
|
(iv) exceeds £500,000
but does not exceed £700,000
|
£8,000 in respect of the first £500,000,
plus £2.50 for each £100 or part of £100 in
excess thereof
|
|
(v) exceeds £700,000
but does not exceed £1,000,000
|
£13,000 in respect of the first £700,000,
plus £3 for each £100 or part of £100 in
excess thereof
|
|
(vi) exceeds £1,000,000
but does not exceed £1,500,000
|
£22,000 in respect of the first £1,000,000
plus £3.50 for each £100 or part of £100 in
excess thereof
|
|
(vii) exceeds £1,500,000 but
does not exceed £2,000,000
|
£39,500 in respect of the first £1,500,000
plus £4 for each £100 or part of £100 in
excess thereof
|
|
(viii) exceeds £2,000,000
|
£59,500 in respect of the first £2,000,000
plus £5 for each £100 or part of £100 in
excess thereof
|
Table B
Land used for domestic purposes
|
Value
of the Transaction
|
Variable element of tax
|
|
(i) does
not exceed £50,000
|
50p each £100 or part of £100 subject to a
minimum of £10
|
|
(ii) exceeds £50,000
but does not exceed £300,000
|
£250 in respect of the first £50,000,
plus £1.50 for each £100 or part of £100 in
excess thereof
|
|
(iii) exceeds £300,000
but does not exceed £500,000
|
£4,000 in respect of the first £300,000,
plus £2 for each £100 or part of £100 in
excess thereof
|
|
(iv) exceeds £500,000
but does not exceed £700,000
|
£8,000 in respect of the first £500,000,
plus £3 for each £100 or part of £100 in
excess thereof
|
|
(v) exceeds £700,000
but does not exceed £1,000,000
|
£14,000 in respect of the first £700,000,
plus £3.50 for each £100 or part of £100 in
excess thereof
|
|
(vi) exceeds £1,000,000
but does not exceed £1,500,000
|
£24,500 in respect of the first £1,000,000
plus £4.50 for each £100 or part of £100 in
excess thereof
|
|
(vii) exceeds £1,500,000 but
does not exceed £2,000,000
|
£47,000 in respect of the first £1,500,000
plus £5.50 for each £100 or part of £100 in
excess thereof
|
|
(viii) exceeds
£2,000,000 but does not exceed £3,000,000
|
£74,500 in respect of the
first £2,000,000 plus £7.50 for each £100 or part of £100
in excess thereof
|
|
(ix) exceeds
£3,000,000 but does not exceed £6,000,000
|
£149,500 in respect of the
first £3,000,000 plus £10 for each £100 or part of £100
in excess thereof
|
|
(x) exceeds
£6,000,000
|
£449,500 in respect of the
first £6,000,000 plus £11 for each £100 or part of £100
in excess thereof
|
(1A) For
the purposes of sub-paragraph (1) –
(a) a
reference to domestic use must be construed as a reference to use for domestic
purposes in accordance with the Rates (Jersey)
Law 2005;
(b) a
reference to non-domestic use must be construed as a reference to use for
non-domestic purposes in accordance with that Law;
(c) any
question whether land is used for domestic or non-domestic purposes is
determined in accordance with the use indicated in the Rates List maintained
and kept under that Law for the parish in which the land is situated at the
date of the relevant transaction.
(2) For
the purposes of sub-paragraph (1), where consideration passes in respect
of a transaction described in Article 3(1)(a) or (b), the value of the
transaction is –
(a) if
sub-paragraph (2A) applies, the amount of the consideration; and
(b) in any other case, the amount of the consideration or, if
the gross value of the land exceeds the consideration, the gross value of the
land.
(2A) This
sub-paragraph applies where –
(a) the land
to which the transaction relates is land on which a dwelling is, or is to be, constructed;
(b) the
sale and purchase contract for the transaction is not transferable by the
purchaser to another person;
(c) the
sale and purchase contract contains a penalty of at least 10% of the
consideration that applies if the purchaser does not complete the purchase;
(d) the
consideration agreed in the sale and purchase contract is at or above the
notional market value, at the time the contract was signed, of the dwelling;
and
(e) the sale
and purchase contract was signed on or after 1st
January 2017.
(3) For the purposes of
sub-paragraph (1), where no consideration passes in respect of a
transaction described in Article 3(1)(a) or (b), the value of the
transaction is the gross value of the land to which it relates.
(4) Notwithstanding
sub-paragraphs (2) and (3), for the purposes of sub-paragraph (1),
where a transaction described in Article 3(1)(a) is for the transfer of
shares by a sole owner into joint ownership with another person, or where a
transaction described in Article 3(1)(b) is for an alteration of a
declaration of trusts whereby a share held on trust for the benefit of one
person is henceforth held on trust for the benefit of that person jointly with
another person, the value of the transaction is the amount of consideration for
it or, if one half of the gross value of the land exceeds such consideration,
one half of the gross value of land.
(5) Notwithstanding
sub-paragraphs (2) and (3), for the purposes of sub-paragraph (1),
where a transaction described in Article 3(1)(a) is for the transfer of
shares by joint owners into sole ownership, or where a transaction described in
Article 3(1)(b) is for an alteration of a declaration of trusts whereby a
share held on trust for the benefit of persons jointly is henceforth held on
trust for the benefit of one only of those persons, the value of the
transaction is the amount of consideration for it or, if one half of the gross
value of the land exceeds such consideration, one half of the gross value of
the land.
3 Basic amount charged on the value of a
transaction to which Article 3(1)(c) applies
Except as otherwise
provided in the following provisions of this Schedule, LTT shall be charged on
the value of a transaction to which Article 3(1)(c) applies at a rate of £90
plus (subject to a minimum amount of £5) 50p for each £100 or part
of £100 of the amount secured by the security agreement.
3A Further
amounts secured by a transaction to which Article 3(1)(c) applies
(1) This
paragraph applies where there is a transaction to which Article 3(1)(c)
applies and the conditions specified in sub-paragraph (2) are met.
(2) Those
conditions are that –
(a) some or all of the amount secured by that
transaction remains unpaid at the time a new amount is secured (the first
amount being referred to as the “original amount” and the second
amount as the ‘new amount’);
(b) the original and new amount apply to a
dwelling that is owned by a company and occupied by a person (the
“occupier”) as his or her sole place of residence in Jersey, such
person being entitled to occupy that dwelling by virtue of owning shares in
that company;
(c) the new amount and the original amount
relate to the same dwelling;
(d) the occupier referred to in clause (b)
is –
(i) the
borrower of the original amount and the new amount; and
(ii) a
person who is –
(A) an Entitled
person in accordance with the Control of
Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013,
other than by virtue of Regulation 2(1)(e) of those Regulations,
(B) a
Licensed person under those Regulations, or
(C) the
spouse or a civil partner of a person described in (A) or (B);
(e) the effect of borrowing the new amount is to
extinguish the borrower’s debt in respect of the original amount;
(f) LTT in respect of the original amount
has been paid under paragraph 3.
(3) LTT
shall be charged on the value of the transaction described in sub-paragraph (1)
in respect of the new amount at the rate of –
(a) where the new amount is less than or equal
to the unpaid amount, £90;
(b) where the new amount is greater than the
unpaid amount –
(i) for
the portion of the amount that is equal to the unpaid amount, £90,
and
(ii) for
the portion of the amount that is greater than the unpaid amount, 50p for each
£100 or part of £100, subject to a minimum of £5.
3B Lower value residential property: security interests
(1) This
paragraph applies to a transaction described in Article 3(1)(c) that
relates to –
(a) a transaction described in Article 3(1)(a)
in respect of land on which a
dwelling is, or is to be, constructed for occupation by the occupier; and
(b) the gross value of the property or, where the dwelling has not been
constructed, the notional gross value of the property once the dwelling has
been constructed, calculated on the basis of market
values obtaining at the time of the sale, is £700,000 or less; and
(c) both transactions relate to the same shares
and take place on the same day.
(2) The
rate of LTT applicable to a transaction to which this paragraph applies is £90
plus –
(a) where the value of the property does not
exceed £600,000, nil;
(b) where the value of the property exceeds £600,000
but does not exceed £700,000 –
0.5% x ((Y –
600,000)/100,000)
where Y is the value of
the property.
(3) For
the purposes paragraph (2) “value of the property” is
construed in accordance with paragraph (1)(b).
4 First-time
buyers: purchase
(1) This paragraph applies
to a transaction described in Article 3(1)(a) or (b) which relates to land
on which a dwelling is, or is to be, constructed for occupation by the occupier
where –
(a) the occupier requests that the LTT be assessed in accordance with
this paragraph;
(b) the occupier is –
(i) an
Entitled person in accordance with the Control of
Housing and Work (Residential and Employment Status) (Jersey)
Regulations 2013, other than by virtue of Regulation 2(1)(e) of
those Regulations, or
(ii) the
spouse or a civil partner of a person described in sub-clause (i);
(c) the occupier satisfies the Comptroller that he or she has never
owned a reversionary interest in any dwelling accommodation wherever situated
nor has he or she ever previously been entitled to occupy such dwelling
accommodation (or would have been so entitled if clause (b) applied) by
virtue of having owned the accommodation; and
(d) the consideration for
the transaction is not less, or not substantially less, than the gross value of
the land to which the transaction relates.
(2) For the purposes of
sub-paragraph (1)(c), the reference to having owned a reversionary
interest in dwelling accommodation includes –
(a) having held such
accommodation on contract lease;
(b) having owned such
accommodation with any other person;
(c) having owned any share
described in Article 3(1)(a) that confers a right of occupation of such accommodation;
(d) any arrangement whereby a share described in
Article 3(1)(a) was held on trust for the benefit of the occupier.
(3) The rate of LTT applicable to a transaction to which this paragraph
applies is £90, plus –
(a) where the value of the transaction does not
exceed £350,000, nil;
(b) where the value of the transaction exceeds
£350,000 but does not exceed £600,000, nil in respect of the first
£350,000, plus £1 for each £100 or part of £100 in
excess thereof;
(c) where
the value of the transaction exceeds £600,000 but does not exceed £700,000,
the amount of LTT that would have been payable if paragraph (2) had applied
reduced by the following formula:
8,500 – ((V
– 600,000) × 8.5%)
where V is the value of
the transaction.
(4) For the purposes of
this paragraph, the value of the transaction is the gross value of the land or,
if the dwelling has not yet been constructed on it, the notional gross value of
the land once the dwelling has been constructed.
5 Properties that are not
main residences
(1) This
paragraph applies to a transaction described in Article 3(1)(a) or (b)
which relates to land on which there is a dwelling that is acquired for a
purpose other than use as the main residence of the person to whom the share is
transferred, but does not apply if the dwelling is acquired for the purpose of it
forming part of the stock of a trade taxable under Article 51(1)(b) of the
1961 Law.
(2) In
sub-paragraph (1) “main residence” means the property that is
occupied as the person’s main residence whether or not
it is in Jersey.
(3) The
rate of LTT applicable to a transaction to which this paragraph applies is
£90 plus the amount found in accordance with the table –
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|
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does not exceed £50,000
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£3.50p each £100 or
part of £100 subject to a minimum of £10
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exceeds £50,000 but does
not exceed £300,000
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£1,750 in respect of the
first £50,000, plus £4.50 for each £100 or part of
£100 in excess thereof
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exceeds £300,000 but does
not exceed £500,000
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£13,000 in respect of the
first £300,000, plus £5 for each £100 or part of £100
in excess thereof
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exceeds £500,000 but does
not exceed £700,000
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£23,000 in respect of the
first £500,000, plus £6 for each £100 or part of £100
in excess thereof
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exceeds £700,000 but does
not exceed £1,000,000
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£35,000 in respect of the
first £700,000, plus £6.50 for each £100 or part of
£100 in excess thereof
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exceeds £1,000,000 but
does not exceed £1,500,000
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£54,500 in respect of the
first £1,000,000 plus £7.50 for each £100 or part of
£100 in excess thereof
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exceeds £1,500,000 but
does not exceed £2,000,000
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£92,000 in respect of the
first £1,500,000 plus £8.50 for each £100 or part of
£100 in excess thereof
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exceeds £2,000,000 but
does not exceed £3,000,000
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£134,500 in respect of the
first £2,000,000 plus £10.50 for each £100 or part of
£100 in excess thereof
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exceeds £3,000,000 but
does not exceed £6,000,000
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£239,500 in respect of the
first £3,000,000 plus £13 for each £100 or part of
£100 in excess thereof
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exceeds £6,000,000
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£629,500 in respect of the
first £6,000,000 plus £14 for each £100 or part of
£100 in excess thereof
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6 Sole ownership into joint
ownership: matrimonial property or civil partnership property
(1) This
paragraph applies where a transaction described in paragraph 2(4) –
(a) takes
place by reason of an order made by the Royal Court under Article 28 of
the Matrimonial Causes (Jersey)
Law 1949, or Article 48 of the Civil Partnership (Jersey)
Law 2012; or
(b) is
a transaction whereby shares formerly owned by, or held on trust for the
benefit of, an individual are jointly owned by, or
held on trust for the joint benefit of, that individual and his or her spouse or
civil partner and, at the time of the transaction, the land is their
matrimonial home or civil partnership home.
(2) In
a case to which this paragraph applies, LTT shall be charged at the rate of £90.
7 Joint ownership into sole
ownership: matrimonial property or civil partnership property
(1) This
paragraph applies where a transaction described in paragraph 2(5) –
(a) takes
place by reason of an order made by the Royal Court under Article 28 of
the Matrimonial Causes (Jersey)
Law 1949, or under Article 48 of the Civil Partnership (Jersey)
Law 2012; or
(b) is
a transaction whereby shares formerly owned by, or held on trust for the
benefit of, spouses or civil partners jointly are solely owned by, or held on
trust for the sole benefit of, one of them and, at the time of the transaction,
the land is their matrimonial home or civil partnership home.
(2) In
a case to which this paragraph applies, LTT shall be charged at the rate of £90.
8 Charitable occupier or
secured party
Where the Comptroller is
satisfied that an occupier or a secured party qualifies for exemption from
income tax pursuant to Article 115(a), (aa) or (ae) of the 1961 Law,
LTT shall be charged on the value of a transaction to which this Law applies at
the rate of £180.
9 Devolution of deceased
person’s estate
Where a transaction
described in Article 3(1)(a) or (b) gives effect to a devise to a
beneficiary or the devolution on intestacy to the heir or heirs, of a deceased
person’s estate, LTT shall be charged at the rate of £90.
10 Mode of
calculating value where cash consideration is in foreign currency
(1) Where, by virtue of
this Schedule, the value of a transaction is to be determined by reference to
any cash consideration passing for the transaction, and that consideration is
in a currency other than sterling, the value of the transaction shall be the
equivalent value, in sterling, of the cash consideration, according to the rate
of exchange prevailing on the day the value of the transaction is to be
determined in accordance with this Schedule.
(2) Evidence of the rate of
exchange prevailing on a day may be given by written certificate signed by an
officer of any bank in Jersey.