Finance
(2021 Budget) (Jersey) Law 2021
A LAW to set the standard rate of
income tax for 2021 and to implement parts of the government plan for the 2021
financial year by amending the Income Tax (Jersey) Law 1961, the Customs
and Excise (Jersey) Law 1999, the Stamp Duties and Fees (Jersey) Law 1998,
the Taxation (Land Transactions) (Jersey) Law 2009, the Revenue
Administration (Jersey) Law 2019 and the Goods and Services Tax
(International Services Entities) (Jersey) Regulations 2008.
Adopted
by the States 17th December 2020
Sanctioned
by Order of Her Majesty in Council 28th April 2021
Registered by the Royal Court 30th April 2021
Coming into force 1st January 2021
THE STATES, subject to the sanction of Her Most
Excellent Majesty in Council, have adopted the following Law –
PART 1
STANDARD
RATE OF INCOME TAX SET FOR 2021 AND INCOME TAX (JERSEY) LAW 1961
AMENDED
1 Standard rate of income tax
for 2021
Income tax is levied and
charged for the year 2021 at the standard rate of 20 pence in the
pound, in accordance with and subject to the Income Tax (Jersey) Law 1961[1].
2 Amendment of Income Tax (Jersey) Law 1961
This Part amends the Income
Tax (Jersey) Law 1961[2].
3 Article 17A (penalty for late delivery of return)
amended
(1) In
Article 17A(2)(a), “that is served by a notice in the following year” is
deleted.
(2) In
Article 17A(2B)(b), for “20B or 20C” there is substituted “20B, 20C or
20D”.
(3) For
Article 17A(3) there is substituted –
“(3) A person who is required to deliver a return
under Article 16 is not liable to a penalty under this Article if –
(a) the
person is not a body corporate; and
(b) the
Comptroller is satisfied that the person is not liable to pay any tax for the
period to which the return relates.”.
(4) For
Article 17A(4A) there is substituted –
“(4A) Paragraph (4B) applies if –
(a) a
person, other than a body corporate, is liable to pay one or more penalties
under paragraph (2A) in respect of a return under Article 16; and
(b) the
Comptroller is satisfied that the person is liable to pay tax of less than £50
for the period to which the return relates.
(4B) If this paragraph applies, –
(a) each
penalty that the person is liable to pay under paragraph (2A) is abated to
an amount equal to the tax the person is liable to pay for the period to which
the return relates; and
(b) the
Comptroller must repay to the person any amount paid to discharge the person’s
liability under paragraph (2A) that exceeds the amount of the penalty
after the abatement.”.
4 Article 70C and 70D inserted
After Article 70B there
is inserted –
“70C Deductions on account of
foreign tax paid
(1) Despite Article 70, in computing the
profits or gains to be charged in respect of a trade under Schedule D
there is allowed to be deducted as expenses in any year an amount equal to the
amount of foreign tax payable in respect of that trade except where the person has
claimed a credit in respect of that foreign tax under Article 112 or Part 14A.
(2) In this Article “foreign tax” has the same
meaning as in Article 114A.
70D Employer’s contributions into group life insurance
scheme
(1) Despite Article 70, in computing the
profits or gains to be charged in respect of a trade or profession under
Schedule D there is allowed to be deducted as expenses in any year an
amount equal to the sum of contributions payable by the person liable to tax in
respect of that trade or profession into a group life insurance scheme that is
wholly and exclusively for the benefit of the person’s employees.
(2) However, paragraph (1) applies only if –
(a) the
death benefits payable under the scheme do not exceed the total of 5 times
the emoluments received by the deceased employee during the year immediately
preceding his or her death; and
(b) where
the employer is a company, no employee who is a beneficiary of the scheme owns more
than 20% of the shares of the company.
(3) In
this Article “employee” means a person who is paid wages or salary regardless
of whether the person is employed or is an office holder.”.
5 Article 80 (basis of computation under Cases IV and
V) amended
After Article 80(3) there
is inserted –
“(3A) Tax in respect of
distributions, within the meaning of Article 3AE(1)(a) only, of a company
that is non-resident in Jersey is not charged under Case V of Schedule D
on so much of any such distribution as is made out of the capital profits of
the company.”.
6 Article 92A (threshold for exemption for income tax)
amended
(1) In
Article 92A(2)(ii), for “£25,550” there is substituted “£25,700”.
(2) In
Article 92A(2A)(ii), for “£25,550” there is substituted “£25,700”.
(3) In Article 92A(4)(i), for “£6,250”
there is substituted “£6,300”.
(4) In Article 92A(4A)(i), for “£6,250”
there is substituted “£6,300”.
(5) For Article 92A(6) there is
substituted –
“(6) The
threshold that applies to an individual to whom paragraph (2) or (2A) does
not apply for the year of assessment is £16,000 (but may be increased by
paragraphs (8) and (9) and Article 92B).”.
7 Article 92B (increase
in exemption threshold for child day care) amended
(1) In Article 92B(1)(c) and (d), for
“£16,000” there is substituted “£16,320”.
(2) In Article 92B(1)(e), for “£6,150”
there is substituted “£6,273”.
(3) In Article 92B(5), in paragraph (a) of
the definition “qualifying income”, for “£6,250” there is substituted “£6,300”.
8 Article 95 (children)
amended
In Article 95(1) and (4), for “£3,000” there is substituted
“£3,060”.
9 Article 98A (additional
allowance in respect of children) amended
In Article 98A(1A), for “£4,500” there is substituted “£4,590”.
10 Article 106A
(allowances and balancing adjustments) amended
(1) In Article 106A(2), “, or a
proportionately reduced percentage of the excess if the trade has been carried
on for part only of the year of assessment” is deleted.
(2) After Article 106A(2) there is
inserted –
“(2A) The
percentage for the excess under paragraph (2) –
(a) is
proportionately reduced if the financial period or financial periods forming
the basis of the year of assessment is less than 12 months; and
(b) is
proportionately increased if the financial period or financial periods forming
the basis of the year of assessment is more than 12 months.”.
(3) After Article 106A(4), there is
inserted –
“(4A) However,
if Article 106AB applies, the qualifying expenditure of a person who
succeeds to a trade is determined under Article 106AB(2)(c).”.
(4) In Article 106A(5)(e), after “as
permanently discontinued,” there is inserted “and Article 106AB does not
apply”.
11 Article 106AB
(special provisions if assets transferred to successor to trade) inserted
After Article 106A there is inserted –
“106AB Special provisions if assets
transferred to successor to trade
(1) This
Article applies if –
(a) a
person (the “successor”) succeeds to a trade in the circumstances described in
the proviso to Article 75(1) or in Article 75(2);
(b) all
of the plant and machinery in the trade is transferred to the successor; and
(c) all
parties to the succession notify the Comptroller in writing that they wish for
this Article to apply.
(2) If
this Article applies, –
(a) the
person who discontinues the trade (the “predecessor”) is not required to bring
into account a disposal value under Article 106A(5);
(b) the
predecessor’s annual allowance for the year in which the succession occurs is
calculated under Article 106A(2) (as adjusted, if necessary, by Article 106A(2A));
and
(c) the
successor’s qualifying expenditure for the year in which the succession occurs
is the sum of –
(i) the predecessor’s qualifying expenditure
for the plant and machinery calculated under Article 106A(4), less the
predecessor’s allowance for the year; and
(ii) the successor’s
qualifying expenditure calculated under Article 106A(4), less any amount
spent on acquiring the plant and machinery acquired as part of the succession.”.
12 Article 110B
(capital allowance may be allowed as loss) inserted
After Article 110A there is inserted –
“110B Capital allowance may be
allowed as loss
(1) For
the purposes of Articles 107 and 107A, a person may elect to treat a
capital allowance to which the person is entitled under Article 106A(2) as
a loss sustained in the person’s trade, profession or vocation.
(2) Article 106C(8)
does not apply to an amount treated as a loss under this Article.”.
13 Article 115 (miscellaneous
exemptions) amended
After Article 115(ae)(iv) there is inserted –
“(v) Clos de Paradis Housing Trust”.
14 Article 122AA (access of spouse B
to tax information) inserted
After
Article 122 there is inserted –
“122AA Access of spouse B
to tax information
(1) This Article applies to a person who is a
spouse B if –
(a) the person is living with
their spouse A; and
(b) neither spouse has
elected for separate assessment.
(2) The Comptroller must, on request, provide
to the person information collected under this Law that relates to the person’s
spouse A for a period –
(a) that is not before the 2021
year of assessment; and
(b) during which the spouses
were married and living together.”.
15 Article 122F (access
of civil partner B to tax information) inserted
After Article 122E there is inserted –
“122F Access of civil partner B
to tax information
(1) This
Article applies to a person who is a civil partner B if –
(a) the
person is living with their civil partner A; and
(b) neither
civil partner has elected for separate assessment.
(2) The
Comptroller must, on request, provide to the person information collected under
this Law that relates to the person’s civil partner A for a period –
(a) that
is not before the 2021 year of assessment; and
(b) during
which the civil partners were in a civil partnership and living together.”.
16 Article 131OA (exemption
from tax for lump sums paid from overseas schemes) amended
In Article 103OA(5)(b), for “the last Friday in July” there is
substituted “the end of 31st July”.
17 Article 131P (withdrawal
of approval) amended
In Article 131P(8), –
(a) after “The Comptroller
may” there is inserted “, at the time that the Comptroller raises an assessment
under paragraph (6),”;
(b) for the existing instance
of “paragraph (6)” there is substituted “that paragraph”.
18 New Article 143AA (power
to make Regulations relating to companies in the cannabis industry) inserted
After Article 143 there is inserted –
“143AA Power to make Regulations
relating to companies in the cannabis industry
(1) The
States may, by Regulations, amend this Law to provide for the taxation of the
profits of companies whose business involves or relates to cannabis or its
derivatives.
(2) Regulations
made under this Article may apply –
(a) to
all companies whose business involves or relates to cannabis or its derivatives;
or
(b) to
only some of those companies, based on –
(i) the types of activities that the companies
undertake,
(ii) the proportion of the
companies’ activities or profits that relate, or do not relate, to cannabis or
its derivatives, or
(iii) any other matter that the
States considers relevant.”.
19 Article 145 (delivery
and service of notices and forms) substituted
For Article 145 there is substituted –
“145 Delivery and service of
notices and forms
(1) A
notice, form or similar document that is required to be served on or given to a
person under this Law may be –
(a) delivered
to the person personally;
(b) sent
to the person by post at the person’s usual or last known place of abode or
place of business;
(c) if
the person is a company, sent to the company’s registered office or place of
business; or
(d) sent
by any means of electronic communication.
(2) A
notice that is required to be served on or given to a person under this Law may
be included within any other notice.
(3) A
person may request in writing that a notice, form or other document be served
(by any of the methods in paragraph (1)), to the person’s appointed agent.
(4) The
Comptroller must not unreasonably refuse a request.
(5) In
this Article, “electronic communication” –
(a) has
the meaning given in Article 1(1) of the Electronic Communications
(Jersey) Law 2000[3]; and
(b) includes
making a notice, form or document available for electronic retrieval.”.
20 Schedule 5 amended
(1) In Schedule 5, paragraph 22, for
the definition “new taxpayer” there is substituted –
“ “new taxpayer” –
(a) means
a person –
(i) to whom Article 41H (as in force
before amended by Income Tax (Amendment No. 46) (Jersey) Law 202-)
applied for the year beginning 1st January 2019, or
(ii) who chose to be treated
as if Article 41H applied to the person for the year beginning 1st January
2019; but
(b) does
not include a person if 25% or less of the person’s total income for the 2019
year of assessment consists of earnings.”.
(2) In Schedule 5, paragraph 23(1)(a),
for “Articles 39, 41A and 41AA” there is substituted “Articles 39 and
41A”.
(3) In Schedule 5, after paragraph 23(1)
there is inserted –
“(1A) This
paragraph does not apply to –
(a) a
company; or
(b) a
scheme manager of an approved Jersey scheme, an approved drawdown contract or
an approved trust (as defined in Article 130) in respect of tax charged
under Part 19.”.
(4) In Schedule 5, paragraph 24, for
sub-paragraph (1)(b) there is substituted –
“(b) the
payment was not received as a payment by –
(i) a new taxpayer,
(ii) a company, or
(iii) a scheme manager of an
approved Jersey scheme, an approved drawdown contract or an approved trust (as
defined in Article 130) for tax charged under Part 19; and”.
(5) In Schedule 5, paragraph 25(3),
for the definition “D” there is substituted –
“D is the amount of income tax already paid for 2020 (not including
an amount deducted during the year under Article 41B or 41E or an amount
paid during the year as an instalment under Article 41A).”.
(6) After Schedule 5, paragraph 25 there is
inserted –
“26 Income Tax (Amendment No. 46) (Jersey) Law 202-: credits for
repayment of shareholder loans
(1) This
paragraph applies if –
(a) there
is an amount attributable to a person, other than a new taxpayer, as a
shareholder loan under Article 81O for the 2019 year of assessment; and
(b) the
person is entitled to a credit under Article 81O(6) in respect of that
shareholder loan for a later year of assessment; and
(c) the
person’s 2019 liability has not been paid in full.
(2) The
Comptroller must apply the credit that the person is entitled to under
Article 81O(6) towards the unpaid amount of the person’s 2019 liability.”.
part 2
Customs and excise (Jersey) law 1999
amended
21 Amendment of Customs and
Excise (Jersey) Law 1999
This Part amends the Customs and Excise (Jersey) Law 1999[4].
22 Excise duty: tobacco
For the table in paragraph 6 of Part 2 of Schedule 1
there is substituted –
|
“Type of tobacco
|
Rate of excise duty per kilogramme
|
|
(a) unprocessed tobacco
|
£420.81
|
|
(b) cigars
|
£453.36
|
|
(c) cigarettes
|
£551.22
|
|
(d) hand-rolling tobacco
|
£525.27
|
|
(e) processed tobacco other than types (b) to (d)
|
£438.51”.
|
23 Excise duty: hydrocarbon
oil
For paragraph 7(1) of Part 2 of Schedule 1 there is
substituted –
“(1) There
shall be charged, on hydrocarbon oil imported or delivered into or produced in
Jersey, excise duty at the following rates –
|
Type of hydrocarbon oil
|
Rate of excise duty per hectolitre
|
|
(a) higher octane ultra low sulphur petrol
|
£60.71
|
|
(b) all other ultra low sulphur petrol
|
£58.83
|
|
(c) ultra low sulphur diesel
|
£58.83
|
|
(d) all other types of hydrocarbon oil
|
£62.77”.
|
part 3
Stamp
duties and fees (Jersey) law 1998 amended
24 Amendment of Stamp Duties and Fees
(Jersey) Law 1998
This Part amends the Stamp
Duties and Fees (Jersey) Law 1998[5].
25 Article 1 (Interpretation) amended
In Article 1 after the
definition “designated officer” there is inserted –
“ “first-time buyer” means a purchaser of immovable property where
the transaction relating to that property fulfils all the conditions that are
required to be fulfilled for the fees set out in item 13(b) in a table in
paragraph 3 of Schedule 1 to apply;”.
26 Article 6B inserted
After Article 6A there
is inserted –
“6B Reduction of stamp duty
where immovable property purchased under approved Assisted Ownership Scheme
(1) Where a first-time buyer purchases
immovable property under an Assisted Ownership Scheme and the conditions set
out in paragraph (2) are met, the amount of stamp duty payable is that set
out in item 13(b) in a table in paragraph 3 of Schedule 1,
calculated as if the affordable price were the gross value of the property.
(2) The conditions are that the Assisted
Ownership Scheme has been approved by the Minister for Children and Housing and –
(a) the
property has been allocated to the purchaser through the Affordable Housing
Gateway administered by the Minister for Children and Housing; or
(b) the
Scheme has been approved by the Minister for Treasury and Resources.
(3) The affordable price is the proportion of
the gross value of the property that is funded by the purchaser, whether or not
secured by one or more simple conventionnel
hypothecs, or other security.”.
27 Schedule 1 amended
(1) In
the second item (viii) of the table in paragraph 2 of
Schedule 1, for “£6.50” there is substituted “£7”.
(2) In
item (ix) of the table in paragraph 2 of Schedule 1, –
(a) for “£139,500” there is
substituted “£144,500”;
(b) for “£8.50” there is
substituted “£9.50”.
(3) In
item (x) of the table in paragraph 2 of Schedule 1, –
(a) for “£394,500” there is
substituted “£429,500”;
(b) for “£9.50” there is
substituted “£10.50.
(4) In
the table for item 46 in paragraph 3 of Schedule 1, –
(a) in item (1)(h), for
“£6.50” there is substituted “£7”;
(b) in item 1(i), –
(i) for “£139,500” there is substituted
“£144,500”,
(ii) for “£8.50” there is
substituted “£9.50”;
(c) in item 1(j), –
(i) for “£394,500” there is substituted
“£429,500”,
(ii) for “£9.50” there is
substituted “£10.50”.
part 4
taxation (land TRANSACTIONS) (jersey) Law 2009 amended
28 Amendment of Taxation
(Land Transactions) (Jersey) Law 2009
This Part amends the Taxation (Land Transactions) (Jersey) Law 2009[6].
29 Article 1 (interpretation)
amended
In Article 1 after the definition “equity capital” there is
inserted –
“ “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;”.
30 Article 8A inserted
After Article 8 there is inserted –
“8A Reduction of LTT where land transaction confers right of
occupation under approved Assisted Ownership Scheme
(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 Children and Housing and –
(a) the
land has been allocated to the occupier through the Affordable Housing Gateway
administered by the Minister for Children and Housing; or
(b) the
Scheme has been approved by the Minister for Treasury and Resources.
(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.”.
31 Schedule amended
(1) In item (h) of the table in
paragraph 2(1) of the Schedule, for “£6.50” there is substituted “£7”.
(2) In item (i) of the table in
paragraph 2(1) of the Schedule, –
(a) for “£139,500” there is
substituted “£144,500”;
(b) for “£8.50” there is
substituted “£9.50”.
(3) In item (j) of the table in
paragraph 2(1) of the Schedule, –
(a) for “£394,500” there is
substituted “£429,500”;
(b) for “£9.50” there is
substituted “£10.50”.
PART 5
Revenue Administration (Jersey) Law 2019
amended
32 Amendment of Revenue
Administration (Jersey) Law 2019
This Part amends the Revenue Administration (Jersey) Law 2019[7].
33 Article 2 (Comptroller of Revenue)
amended
(1) For Article 2(1)(b) there is
substituted –
“(b) the
collection and administration of social security contributions under, and in
accordance with, this Law, the Income Tax Law and the Social Security Law as
the agent for the Minister for Social Security; and”.
(2) In Article 2(3), for “LTC” there is
substituted “Social security”.
(3) After Article 2(7) there is
inserted –
“(8) In
this Article, “social security contributions” means contributions specified in
Article 4(2) of the Social Security Law.”.
34 Part 5 heading
amended
In the heading to Part 5, “and set-off” is deleted.
35 Article 20 (set-off)
deleted
Article 20 is deleted.
36 New Part 5A (Comptroller’s
powers relating to set-off) inserted
After Article 21 there is inserted –
“Part 5A
COMPTROLLER’S POWERS RELATING
TO SET-OFF
21A Set-off
(1) This
Article applies if –
(a) a
person does not pay an amount that the person is liable to pay under the Income
Tax Law or the GST Law by the deadline for payment; and
(b) the
person is entitled to a refund or credit under the Income Tax Law or the GST
Law.
(2) The
Comptroller may –
(a) withhold
or suspend payment of all or part of the refund or credit; or
(b) apply
all or part of the refund or credit towards payment of the outstanding amount.
(3) The
Comptroller must not withhold, suspend or apply a refund or credit towards
payment of an amount that is not outstanding without the agreement of the
person.
(4) This
Article applies in respect of all amounts a person is liable to pay under the
Income Tax Law or the GST Law, including amounts of LTC contributions, penalties,
interest and other charges.”.
PART 6
goods and services tax (international services entities) (jersey)
regulations 2008 amended
37 Amendment of Goods and Services Tax
(International Services Entities) (Jersey) Regulations 2008
In Regulation 4(1) (basis of fee) of the
Goods and Services Tax (International Services Entities) (Jersey) Regulations 2008[8] –
(a) in sub-paragraph (a)(i)(A)
for “£9,350” there is substituted “£13,100”;
(b) in sub-paragraph (a)(i)(B)
for “£200” there is substituted “£300”;
(c) in sub-paragraph (a)(ii)(A)
for “£200” there is substituted “£300”;
(d) in sub-paragraph (a)(ii)(B)
for “£200” there is substituted “£300”;
(e) in sub-paragraph (a)(iii)(A)
for “£9,350” there is substituted “£13,100”;
(f) in sub-paragraph (a)(iii)(B)
for “£200” there is substituted “£300”;
(g) in sub-paragraph (b)
for “£58,000” there is substituted “£78,300”;
(h) in sub-paragraph (c)
for “£3,120” there is substituted “£4,700”;
(i) in sub-paragraph (ca)
for “£3,120” there is substituted “£4,700”;
(j) in sub-paragraph (d)
for “£625” there is substituted “£950”;
(k) in sub-paragraph (da)
for “£3,120” there is substituted “£4,700”;
(l) in sub-paragraph (e)
for “£3,120” there is substituted “£4,700”;
(m) in sub-paragraph (f)
for “£625” there is substituted “£950”;
(n) in sub-paragraph (fa)
for “£3,120” there is substituted “£4,700”;
(o) in sub-paragraph (g)
for “£500” there is substituted “£750”;
(p) in sub-paragraph (i)
for “£200” there is substituted “£300”;
(q) in sub-paragraph (j)
for “£500” there is substituted “£750”.
PART 7
Consequential amendments, citation and
commencement
38 Consequential amendments
The Schedule contains consequential amendments to the Social
Security (Collection of Class 1 and Class 2 Contributions) (Jersey)
Order 2013[9].
39 Citation and commencement
This Law may be cited as the Finance (2021 Budget) (Jersey) Law 2021
and comes into force on 1st January 2021.