Arrangement

part 1  3

part 2  19

part 3  20

part 4  25

A LAW to set the standard rate of income tax for 2016 and to amend the Income Tax (Jersey) Law 1961, the Stamp Duties and Fees (Jersey) Law 1998, the Taxation (Land Transactions) (Jersey) Law 2009 and the Customs and Excise (Jersey) Law 1999

THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law –

“(b)    that portion of the total interest payable that does not exceed the limit specified, for the year of assessment, in the Table.

“ ‘income’ means the pension holder’s total income for a year of assessment, before the deduction of the total approved pension contributions paid by the pension holder in the year of assessment (whether or not allowed as a deduction under paragraph (2)).”.

“(8)    The threshold applicable in an individual’s case shall be increased by –

(a)     the amount of any such increase to which the individual is entitled under Article 95; and

(b)     an additional amount, if the individual is entitled to such an increase under Article 95(1)(b) (having regard to Article 95(3)), including if the individual is entitled to an increase under Article 95(1)(b) by virtue of Article 95(2).”;

“(9)    The threshold applicable in an individual’s case shall be increased by the amount of any such increase to which the individual is entitled under Article 98A.”.

“be entitled in respect of each child to –

(i)      an increase in his or her exemption threshold of £3,000, and

(ii)      a deduction of –

(A)    for the year of assessment 2016, £2,000,

(B)     for the year of assessment 2017, £1,000; or”;

“be entitled in respect of each child to –

(i)      an increase in his or her exemption threshold of £6,000, and

(ii)      a deduction of £6,000.”;

“(3)    In the case of a child who is entitled in the child’s own right to an income exceeding £3,000 a year, the exemption threshold increase and deduction under this Article in respect of the child shall each be reduced –

(a)     in the case of an increase and a deduction under paragraph (1)(a), by the amount of the excess; and

(b)     in the case of an increase and deduction under paragraph (1)(b), by £3 for every £2 of the excess.”;

“(4A) The exemption threshold increase and deduction must be apportioned in the same proportion.”;

“(5)    An apportionment may be made under paragraph (4) notwithstanding that an exemption threshold increase and deduction in respect of the child in question have already been allowed to any individual.”.

“(1A) Subject to paragraphs (2) to (5), the individual shall be entitled to –

(a)     an increase in his or her exemption threshold of £4,500; and

(b)     a deduction of –

(i)      for the year of assessment 2016, £3,000,

(ii)      for the year of assessment 2017, £1,500.”;

“(4A) The exemption threshold increase and deduction must be apportioned under paragraph (4) in the same proportion.

(4B)   An apportionment may be made under paragraph (4) notwithstanding that an exemption threshold increase and deduction in respect of the child in question has already been allowed to any individual.”;

“(5)    Where for any year of assessment an individual is entitled under this Article to apportioned amounts in respect of 2 or more children –

(a)     the exemption threshold increase to which the individual is entitled shall be equal to the sum of those amounts, or the amount referred to in paragraph (1A)(a), whichever is the lesser;

(b)     the deduction to which the individual is entitled shall be equal to the sum of those amounts or the amount referred to in paragraph (1A)(b) for the year of assessment, whichever is the lesser.”.

“(3)    In the case of a child who is entitled in the child’s own right to an income exceeding £3,000 a year –

(a)     the exemption threshold increase under paragraph (1)(a) shall be reduced by the amount of the excess;

(b)     the exemption threshold increase and deduction under paragraph (1)(b) shall each be reduced by £3 for every £2 of the excess.”.

“(1A) Subject to paragraphs (2) to (5), the individual shall be entitled to an increase in his or her exemption threshold of £4,500.”;

“(5)    Where for any year of assessment an individual is entitled under this Article to apportioned amounts in respect of 2 or more children, the exemption threshold increase to which the individual is entitled shall be equal to the sum of those amounts, or the amount referred to in paragraph (1A), whichever is the lesser.”.

“(4)    Where –

(a)     an individual to whom paragraph (2) applies receives earned income for a year of assessment; and

(b)     the individual’s wife also receives earned income for the year of assessment, which is included in the total income of the individual,

the threshold applicable in the individual’s case shall be increased by whichever is the lowest of –

(i)      £4,500;

(ii)      an amount equal to his earned income; or

(iii)     an amount equal to his wife’s earned income.

(4A)   Where –

(a)     an individual to whom paragraph (2A) applies receives earned income for a year of assessment; and

(b)     the individual’s civil partner B also receives earned income for the year of assessment, which is included in the total income of the individual,

the threshold applicable in the individual’s case shall be increased by whichever is the lowest of –

(i)      £4,500;

(ii)      an amount equal to his or her earned income; or

(iii)     an amount equal to civil partner B’s earned income.

(5)     For the purposes of paragraphs (4) and (4A), ‘earned income’ shall not include earned income received or receivable by an individual from his or her spouse or civil partner.”.

“(b)    in the case of a claimant who is an eligible claimant by virtue of sub-paragraph (a) of the definition ‘eligible claimant’ in paragraph (5), whichever is the lower of –

(i)      the claimant’s qualifying income, and

(ii)      the qualifying income of the claimant’s spouse or civil partner;

(ba)    in the case of a claimant who is an eligible claimant by virtue of sub-paragraph (c) of the definition ‘eligible claimant’ in paragraph (5), the claimant’s qualifying income;”.

“ ‘eligible claimant’ means –

(a)     an individual –

(i)      in whose case the exemption threshold described in Article 92A(2) or (2A) applies,

(ii)      who has qualifying income, and

(iii)     whose spouse or civil partner has qualifying income;

(b)     an individual –

(i)      in whose case the exemption threshold described in Article 92A(2) or (2A) applies, and

(ii)      who is entitled to an additional allowance under Article 98A; or

(c)     an individual in whose case the exemption threshold described in Article 92A(6) applies and who has qualifying income;”.

“ ‘qualifying income’ means income arising from a trade, profession, office, employment or vocation chargeable to tax under Case I or II of Schedule D or under Schedule A pursuant to Article 51(1)(b) or (c), excluding –

(a)     the first £4,500 of such income for the year of assessment; and

(b)     in the case of an individual who is married or in a civil partnership, earned income received or receivable by the individual from his or her spouse or civil partner;”.

“106  Non-residents

(1)     An individual who is not resident in Jersey shall only be entitled to allowances and reliefs under this Part for a year of assessment if the individual has profits or gains arising or accruing that are charged to tax for the year of assessment under Case I or Case II(a) or (b) of Schedule D.

(2)     Such allowances and reliefs shall only be given in respect of the individual’s profits or gains described in paragraph (1).

(3)     Article 129A provides for the apportionment of allowances and reliefs in the case of an individual who is not in Jersey for the whole year.”.

“(1A) A person who is not resident in Jersey and who is paid a dividend from which tax is deducted at the rate of 10% under Article 88(3) shall be exempt from the balance of tax that would, apart from this paragraph, be due in respect of the dividend.”.

“19    Finance (2016 Budget) (Jersey) Law 2016: exemption for non-resident’s income

The amendment of Article 118B(1)(ba) by Article 14(2) of the Finance (2016 Budget) (Jersey) Law 2016[3], which has effect for the year of assessment 2014 and ensuing years, shall not affect any claim for exemption from income tax that was made by virtue of Article 118B(1)(ba) before the day Article 14 was deemed to come into force.”.

“20    Finance (2016 Budget) (Jersey) Law 2016: election in respect of shareholder loans for year of assessment 2015

The deletion of Article 81O(9) and (10) by Article 16(1) of the Finance (2016 Budget) (Jersey) Law 2016[4], which has effect for the year of assessment 2016 and ensuing years, does not affect the right of a borrower to make an election, for the year of assessment 2015, under Article 81O(9) and (10) as those paragraphs were in force prior to their deletion.”.

“(5)    Where a deduction is made from a dividend pursuant to this Article –

(a)     the person chargeable to tax on the dividend shall, unless the person is a company to which Article 123C applies, be entitled to a credit; and

(b)     the amount of tax that person is liable to pay in respect of the dividend shall be reduced by the amount of the credit.

(5A)   Subject to paragraph (5B), the credit shall be of an amount equal to the amount of the deduction.

(5B)   If the person chargeable to tax on the dividend is a company to which Article 123D applies, the credit shall be of an amount equal to whichever is the lesser of –

(a)     10% of the gross dividend; and

(b)     the amount of the deduction.”.

“(ab)  the company or bank shall not be entitled to repayment of any tax deducted under Article 88(2) or (3) from a dividend paid to the company or bank;”.

“(ii)    any lump sum paid from or under a pension scheme, annuity contract, retirement trust scheme or similar arrangement, whether the payment is made on the death of a pension holder, in commutation of or otherwise in lieu of a pension, by way of return of contributions paid by a pension holder, by way of transfer, or otherwise (other than a payment which is taxed under Case VI, in accordance with Article 131J(2)(a) or 131L(1));”.

“(iii)   the pension holder attaining the age of 75; and”;

“(i)     a pension holder transfers the whole or part of his or her fund value in an approved Jersey scheme, or in an equivalent scheme (within the meaning of Article 131CG(7)), to an approved Jersey scheme, and”.

“(9)    The scheme may provide for the payment, following the death of a member, of either or both of –

(a)     an income to one or more of the member’s dependants –

(i)      in the case of a child of the member who is a dependant by reason of Article 130A(2)(a) but who, on attaining the age of 23, would not be a dependant by reason of Article 130A(2)(b), until the child attains the age of 23, or

(ii)      in the case of any other dependant, for the life of the dependant;

(b)     a lump sum to the member’s estate or to any person.”;

“(15A)       The scheme may permit payments other than a return of contributions to be made to the employer –

(a)     in exceptional circumstances, such as the winding up of the scheme; and

(b)     with the prior written approval of the Comptroller.”.

“(a)    an annuity to one or more of the individual’s dependants –

(i)      in the case of a child of the individual who is a dependant by reason of Article 130A(2)(a) but who, on attaining the age of 23, would not be a dependant by reason of Article 130A(2)(b), until the child attains the age of 23, or

(ii)      in the case of any other dependant, for the life of the dependant;”.

“(6)    The scheme may provide for the payment, following the death of the primary beneficiary, of either or both of –

(a)     subject to paragraph (6A), a sum by way of annuity equivalent to one or more secondary beneficiaries;

(b)     a lump sum commuting the whole of the fund value to the primary beneficiary’s estate or to any person.”.

“(6A) Where a secondary beneficiary is a person who is a dependant of the primary beneficiary by reason of Article 130A(2)(a) but who, on attaining the age of 23, would not be a dependant by reason of Article 130(2)(b), the scheme must provide for the payment of the sum by way of annuity equivalent to end upon the secondary beneficiary attaining the age of 23.”.

“(6)    The scheme manager of an approved Jersey scheme must notify the Comptroller, in writing, of –

(a)     the date of a transfer received in accordance with paragraph (5);

(b)     the amount of the transfer;

(c)     the name of the scheme from which it was transferred;

(d)     the jurisdiction in which that scheme is established; and

(e)     whether benefits have commenced from that scheme.”.

“131JA  Taxation relating to payment from a Jersey occupational pension scheme to the employer

Where a payment is made from a Jersey occupational pension scheme to the employer as permitted by Article 131(15A), the amount paid shall be treated for the purposes of this Law as a receipt of the trade, profession or vocation carried on by the employer upon whichever is the earlier of –

(a)     the payment falling due; and

(b)     the last day on which the trade, profession or vocation is carried on by the employer.”.

“131N    Exemption from tax for transfer from approved Jersey scheme

The following transfers shall be exempt from tax –

(a)     a transfer, permitted under Article 131CG(2) and (3), of the whole or part of a fund value from an approved Jersey scheme to another approved Jersey scheme or an approved drawdown contract;

(b)     a transfer, permitted under Article 131CG(4), of the whole of a fund value from an approved Jersey scheme to an equivalent scheme established outside Jersey.”.

“(da)  to refuse approval under Article 131(15A);”.

“(1)    Notwithstanding anything in this Law, the Comptroller may, for any purpose described in paragraph (1A) –

(a)     disclose statistical information to the Minister or the Chief Minister; and

(b)     disclose any information to an officer in an administration of the States for which either the Minister or Chief Minister is assigned responsibility.

(1A)   The purposes are –

(a)     the preparation of the general estimate of the revenue of the States; and

(b)     any other purpose affecting the revenue of the States.”.

“(d)    that by reason of the apportionment, under this Law, of an exemption threshold increase or any allowance, relief or deduction between a person and one or more others, an amount is recoverable from the person,”.

“(9A) An employee may, at any time, make an election to the Comptroller to have a rate applied in the employee’s case that exceeds the rate determined in accordance with the foregoing provisions of this Article.

(9B)   If the Comptroller agrees the rate proposed in an election made under paragraph (9A), the Comptroller shall issue a notice in writing to the employee of the rate and the day from which the rate applies.”.

“(3)    If the Comptroller agrees the adjusted rates proposed in an election made under paragraph (2), the Comptroller shall issue a notice in writing of the rates applicable to the husband and wife and the day from which the rates apply.

(3A)   Article 41C(11) to (13) shall apply to a refusal, by the Comptroller, to issue a notice under paragraph (3) of this Article as they apply to a refusal to issue a notice under Article 41C(9B).”.

“(3)    If the Comptroller agrees the adjusted rates proposed in an election made under paragraph (2), the Comptroller shall issue a notice in writing of the rates applicable to the civil partners and the day from which the rates apply.

(3A)   Article 41C(11) to (13) shall apply to a refusal, by the Comptroller, to issue a notice under paragraph (3) of this Article as they apply to a refusal to issue a notice under Article 41C(9B).”.

“(k)    in paragraph (9) for the words ‘The rate determined by the Comptroller in accordance with paragraphs (2)’ there shall be substituted the words ‘The combined effective rate determined by the Comptroller in accordance with paragraphs (3)’;”;

“(la)   in paragraph (9A) for the words ‘a rate’ there shall be substituted the words ‘a combined effective rate’;

 (lb)    in paragraph (9B) for the words ‘the rate’ in the first place that they appear there shall be substituted the words ‘the combined effective rate,’;”.

“(a)    where the amount secured by the security agreement does not exceed £350,000, nil;

(b)     where the amount secured by the security agreement exceeds £350,000 but does not exceed £450,000, nil in respect of the first £350,000 plus 25p for each £100 or part of £100 in excess thereof, subject to a minimum of £25.”.

(a)     during the period of 5 years ending on the day before excise duty is charged on spirits produced by the distiller, has not distilled more than 10,000 litres of alcohol;”.

“(a)    on all spirits, produced by a small independent distiller of spirits, which are imported into or produced or manufactured in Jersey, excise duty at the rate of £17.30 per litre of alcohol; and

(b)     on all other spirits imported into or produced or manufactured in Jersey, excise duty at the rate of £34.57 per litre of alcohol.”;

“(ii)    £30.67 per hectolitre of beer exceeding 2.8% volume but not exceeding 4.9% volume, and

(iii)     £53.14 per hectolitre of beer exceeding 4.9% volume; and”;

“(ii)    £61.34 per hectolitre of beer exceeding 2.8% volume but not exceeding 4.9% volume, and

(iii)     £106.26 per hectolitre of beer exceeding 4.9% volume.”;

“(ii)    £30.67 per hectolitre of cider exceeding 2.8% volume but not exceeding 4.9% volume, and

(iii)     £53.14 per hectolitre of cider exceeding 4.9% volume; and”;

“(ii)    £61.34 per hectolitre of cider exceeding 2.8% volume but not exceeding 4.9% volume, and

(iii)     £106.26 per hectolitre of cider exceeding 4.9% volume.”;

“8      Motor vehicles

(1)     In this paragraph –

‘established CO₂ mass emission figure’ means, in relation to a vehicle, the grams per kilometre of carbon dioxide emitted by the vehicle, established in accordance with sub-paragraphs (2) and (3);

‘motor vehicle’ does not include a restricted speed agricultural tractor, defined in paragraph 9(1);

‘vehicle emissions duty’ means the excise duty payable as described in Article 38(3) or (5).

(2)     The CO₂ mass emission figure for a motor vehicle shall be established when the motor vehicle is first registered in Jersey and shall be the figure specified in a document produced in accordance with the requirements for registration that are prescribed under Part 2 of the Motor Vehicle Registration (Jersey) Law 1993[8].

(3)     Where more than one CO₂ mass emission figure is specified in a document described in sub-paragraph (2), the CO₂ mass emission figure established for the motor vehicle shall be –

(a)     the figure specified as the combined figure or, if there is more than one combined figure, the lowest of them; or

(b)     where there is no combined figure, the lowest figure specified.

(4)     The rate of vehicle emissions duty charged on a motor vehicle is –

(a)     in the case of a motor vehicle that has an established CO₂ mass emission figure, the rate specified in column 2 of Table 1 for the motor vehicle’s established CO₂ mass emission figure, specified in column 1 of Table 1;

(b)     in the case of a motor vehicle that does not have an established CO₂ mass emission figure, the rate specified in column 2 of Table 2 for the cylinder capacity of the motor vehicle’s engine, specified in column 1 of Table 2.

“9      Restricted speed agricultural tractors

(1)     In this paragraph –

‘restricted speed agricultural tractor’ means a motor vehicle that –

(a)     is not constructed itself to carry any load, other than water, fuel, accumulators and other equipment used for the purpose of propulsion, loose tools and loose equipment;

(b)     is designed and used primarily for work in connection with agriculture;

(c)     is driven on a road only when proceeding to and from the site of such work and which when so driven hauls nothing more than land implements or an agricultural trailer; and

(d)     has a maximum speed not exceeding 26 miles per hour;

‘vehicle emissions duty’ means the excise duty payable as described in Article 38(3) or (5).

(2)     The rate of vehicle emissions duty charged on a restricted speed agricultural tractor is –

(a)     if the tractor has not, at any time, been registered outside Jersey, the amount (if any) specified in column 2 of the Table for the cylinder capacity of the tractor’s engine, specified in column 1;

(b)     if the tractor was registered outside Jersey, the amount (if any) specified in column 3, 4 or 5 of the Table, according to when the tractor was first registered outside Jersey, for the cylinder capacity of the tractor’s engine, specified in column 1.