Finance
(2023 Budget) (Jersey) Law 2023
Adopted
by the States 16th December 2022
Sanctioned
by Order of His Majesty in Council 15th February 2023
Registered by the Royal Court 24th February 2023
Coming into force in accordance with Article 65
THE STATES, subject to the sanction of His Most
Excellent Majesty in Council, have adopted the following Law –
Part 1
Standard
rate of income tax set for 2023
1 Standard rate of income tax for 2023
Income tax is levied and
charged for the year 2023 at the standard rate of 20 pence in the pound,
in accordance with and subject to the Income Tax (Jersey) Law 1961.
Part
2
Income
tax (Jersey) Law 1961 amended
Introductory
2 Amendment of the Income Tax (Jersey) Law
1961
This Part amends the Income Tax (Jersey) Law 1961.
Amendment
of interpretation provision
3 Article 3 (general provisions as to
interpretation) amended
In Article 3 –
(a) after the definition
“international activities” there is inserted –
“ “liability to tax” includes income chargeable in a year of assessment at a rate of
0%;”;
(b) for the definition
“officer” there is substituted –
“ “officer” has the same meaning as in the Revenue Administration (Jersey) Law 2019;”.
Returns
4 Article 17A (penalty for late delivery
of return) amended
In Article 17A(2)(a)(i) for
“31st December” there is substituted “30th November”.
Collection
5 Article 41C (calculation of rate)
amended
In Article 41C(2) for the
entry relating to C there is substituted –
6 Article 41CA (revised rates: initiated
by Comptroller) amended
In Article 41CA(3) for the
entry relating to C there is substituted –
“C is the income tax
chargeable for any year preceding the year to which the rate applies, less any
amount of income tax already paid for that preceding year, and any costs
recoverable in respect of unpaid income tax;”.
7 Article 41F (exemption certificate)
amended
In Article 41F(3) and (5)(a)
for “this Law” there is substituted “the Revenue Laws, as defined in Article 1
of the Revenue Administration (Jersey) Law 2019,”.
8 Article 41I (late payment surcharge)
amended
In Article 41I, paragraph (3)
is deleted.
9 Article 49B (general provision for
collection of long-term care contributions) amended
In Article 49B –
(a) after paragraph (2) there
is inserted –
“(2A) An employer must deduct LTC contributions from
payments of earnings made to an employee who is an insured person and must
account for those deductions in accordance with paragraph 3 of Schedule 1A.”;
(b) in paragraph (3) for
“Articles 41B and 41E have effect” there is substituted “Article 41E has
effect”.
10 Schedule 1A (collection of long-term care
contributions) amended
(1) In
Schedule 1A, Part 1 –
(a) in paragraph 2(5)
(collection of long-term care contributions: combined effective rates) –
(i) for the entry relating to C there is
substituted –
“C is the income tax
chargeable for any year preceding the year to which the rate applies, less any
amount of income tax already paid for that preceding year, and any costs
recoverable in respect of unpaid income tax;”,
(ii) for the entry relating
to E there is substituted –
“E is the employee’s total
LTC contributions for any year preceding the year to which the rate applies,
less any amount of contributions already paid for that preceding year, and any
costs recoverable in respect of unpaid contributions;”;
(b) after paragraph 2 there
is inserted –
“3 Duty of employer to
deduct long-term care contributions
(1) Articles 41B to Article 41CB apply to an
employer in respect of an employee who is an insured person as if –
(a) references
in those provisions to an employee’s effective rate are references to the
employee’s combined effective rate;
(b) references
to amounts of tax are references to amounts of tax and LTC contributions.
(2) For the purpose of Article 41B(3), if
an employer has not received a notice under Article 41CC specifying the
employee’s combined effective rate, the employee’s combined effective rate is
22%.”.
(2) In
Schedule 1A, Part 2 the modified Article 41B is deleted.
Provisions
relating to Schedule D
11 Article 65 (general provisions as to
period of computation for offices, employments and pensions) amended
In
Article 65(1) for “Subject to the provisions of Articles 66, 67 and 68, tax
shall be” there is substituted “Tax is”.
12 Article 78 (basis of computation under
Case III) amended
In Article 78(1A)(a) for
“capital profits” there is substituted “realised capital profits”.
13 Article 80 (basis of computation under
Cases IV and V) amended
In Article 80(3A) for
“capital profits” there is substituted “realised capital profits”.
14 Schedule 2 (benefits: exemptions) amended
In
Schedule 2 –
(a) in paragraph 4 (motor
vehicles) after sub-paragraph (2) there is inserted –
“(3) For
the purposes of this paragraph and paragraph 1 of Schedule 3, “motor
vehicle” does not include an electrically assisted pedal cycle within the
meaning of Article 2 of the Pedal Cycles (Jersey) Order
1998.”.
(b) after paragraph 18
(incidental benefits) there is inserted –
(1) There
shall be left out of account pedal cycles provided and used –
(a) for
travel by the office holder or employee between that person’s place of
residence and place of work; or
(b) in
the performance of the office holder’s or employee’s duties.
There shall be left out of
account any pass or prepaid card provided for use on buses in Jersey –
(a) for
travel by the office holder or employee between that person’s place of
residence and place of work; or
(b) in
the performance of the office holder’s or employee’s duties.”.
(c) paragraph 19 is
renumbered as paragraph 21.
15 Schedule 3 (valuation of benefit) amended
In Schedule 3 –
(a) in paragraph 1 (motor
vehicles) for sub-paragraph (2) there is substituted –
“(2) For the purposes of this paragraph, the
value of a motor vehicle owned by the employer is –
(a) where
the benefit is first made available to the employee or office holder in the
year the vehicle is acquired by the employer or the following year, the cost to
the employer of acquiring the vehicle; and
(b) where
the benefit is first made available to the employee or office holder in any
other year, the amount calculated as follows –
Calculate an amount as follows –
Where –
N is the year (for
example, for the year 2020 the amount is 2,020) when the benefit was first made
available to the employee or office holder or; and
E is the year when the
motor vehicle was acquired by the employer,
Calculate the value as follows –
Where –
V is the value of the
vehicle;
C is the cost to the
employer of acquiring the vehicle;
ɑ is the amount
calculated under Step 1.”.
(b) in paragraph 2 (boats,
aircraft and helicopters) for sub-paragraph (3) there is
substituted –
“(3) For the purposes of sub-paragraphs (1)
and (2), the value of a boat, aircraft or helicopter owned by the employer is –
(a) where
the benefit is first made available to the employee or office holder in the
year the vehicle is acquired by the employer or the following year, the cost to
the employer of acquiring the vehicle; and
(b) where
the benefit is first made available to the employee or office holder in any
other year, the amount calculated as follows –
Calculate an amount as follows –
Where –
N is the year (for
example, for the year 2020 the amount is 2,020) when the benefit was first made
available to the employee or office holder; and
E is the year the boat,
aircraft or helicopter was acquired by the employer,
Calculate the value as follows –
Where –
V is the value of the
boat, aircraft or helicopter;
C is the cost to the
employer of acquiring the boat, aircraft or helicopter;
ɑ is the amount
calculated under Step 1.”.
Capital
Allowances
16 Article 106C (miscellaneous and general)
amended
For Article 106C(5) there is
substituted –
“(5) In this Part “basis period” means, in the
case of a person to or on whom an allowance or charge falls to be made in
charging the profits of the person’s trade, the period on the profits of which
tax for the year of assessment falls to be finally computed in respect of that
trade.”.
Exemptions
17 Article 118B (exemption of certain income,
profits or gains of a non-resident) amended
In Article 118B –
(a) in paragraph (1) after
sub-paragraph (h) there is inserted –
“(i) income
distributions from a relevant trust.”;
(b) for paragraph (2) there
is substituted –
“relevant trust” means a trust which is managed
by a trustee resident in Jersey and is –
(a) a
Jersey trust as defined in Article 1 of the Trusts (Jersey) Law 1984; or
(b) a
foreign trust as defined in Article 1 of that Law;
“purchased life annuity” has the same meaning as
in Article 132.”.
18 Article 120AA
(rent-a-room arrangements) inserted
After Article 120 (exemption of consular officers and
employees) there is inserted –
“120AA Exemption in respect of rent-a-room arrangements
(1) Exemption
from income tax is granted in respect of the gross receipts from an arrangement
to which this Article applies (“a rent-a-room arrangement”) where the gross
receipts from those arrangements are £10,000 or less in the year of assessment.
(2) Where
the gross receipts in the year of assessment exceed £10,000, the whole of those
receipts are taxable in accordance with this Law.
(3) A rent-a-room arrangement is an arrangement where –
(a) a
person provides a room in the dwelling that is that person’s main residence for
rent to another person;
(b) the
person to whom the room is rented is –
(i) aged
18 or over, and
(ii)
not a connected person within the meaning of Article 3A;
(4) Despite
paragraph (3)(b)(i) a room may be occupied by a person under the age of 18
if –
(a) the
person has been placed in the room by an appropriate organisation; or
(b) it
is rented to and occupied by a person aged 18 or over who has parental
responsibility within the meaning of the Children (Jersey)
Law 2002 for the person under the age of 18.
(5) In
paragraph (4) “an appropriate organisation” means an organisation that the
Comptroller is satisfied has in place appropriate policies and procedures to
safeguard people under the age of 18 when placing them in accommodation.”.
Independent
taxation
19 Article 121E (election by
spouses for independent taxation from 2024) inserted
After Article 121D, there is inserted –
“121E Election
by spouses for independent taxation from 2024
(1) Spouses
may elect to be independently taxed for the 2024 year of assessment
onwards by, no later than 31st July 2023, giving notice in writing to the
Comptroller signed by both spouses.
(2) An
election has the effect that both spouses are independently taxed spouses for
the 2024 year of assessment and for all subsequent years of assessment.
(3) An
election cannot be revoked.”.
20 Article 122DC (election
by civil partners for independent taxation from 2024) inserted
After Article 122DB, there is inserted –
“122DC Election by civil partners for independent taxation from 2024
(1) Civil
partners may elect to be independently taxed for the 2024 year of
assessment onwards by, no later than 31st July 2023, giving notice in writing
to the Comptroller signed by both civil partners.
(2) An
election has the effect that both civil partners are independently taxed civil
partners for the 2024 year of assessment and for all subsequent years of
assessment.
(3) An
election cannot be revoked.”.
Partnerships
21 Article 3 (general provisions as to
interpretation) amended
In Article 3 –
(a) after the definition
“general notice” there is inserted –
(b) for the definition
“partnership” there is substituted –
22 Article 17A (penalty for late delivery of
return) amended
In Article 17A –
(a) in paragraph (2) after
sub-paragraph (d) there is inserted –
“(e) in
the case of a return under Article 20E, midnight on 30th November in the
year following the year of assessment.”;
(b) in paragraph (2B) after
“20D” there is inserted “, 20E”;
(c) in paragraph (12A) for
“Article 16, 17, 20, 20A, 20B, 20C, 20D or 135C” there is substituted “Article
16, 17, 20, 20A, 20B, 20C, 20D, 20E or 135C, and includes a notification under
Article 20E(1)”.
23 Article 20E (returns of information by
partnerships) inserted
After Article 20D there is
inserted –
“20E Returns of information by
partnerships
(1) The responsible partner of a partnership
must notify the Comptroller whether the partnership is a relevant partnership
by midnight on 30th November in the year following the year of assessment.
(2) The responsible partner of a relevant
partnership must prepare and deliver to the Comptroller a true, complete and
correct return containing such information as the Comptroller may, by notice,
reasonably require.
(3) For the purposes of this Article, a
“relevant partnership” is a partnership that has a source of income in the year
of assessment which would, if amounting to profit or gain, give rise to any
partner’s liability to tax in Jersey.
(4) A collective investment vehicle is not a
relevant partnership for the purposes of this Article.
(5) For the purposes of this Article the
“responsible partner” is a partner, who cannot be a limited partner, determined
by the Comptroller to be the responsible partner.
(6) In determining who the responsible partner
is, the Comptroller must have regard to a nomination (if any) made by the
partnership.
(7) If the Comptroller determines that the
responsible partner is a partner other than one nominated by the partnership
the Comptroller must notify the partnership who the responsible partner is.
(8) For the purposes of this Article
“collective investment vehicle” means –
(i) not created for the purposes of
securitisation or the repackaging of assets, and
(ii) would be a collective
investment fund except that it is prescribed not to be collective investment
fund in an Order made under Article 3(7) of the Collective Investment Funds (Jersey) Law 1988.”.
24 Article 21 (form and manner of returns)
amended
In Article 21(1) for
sub-paragraph (j) there is substituted –
“(j) a
return or a notification under Article 20E;
(k) a
notification under Article 123AA.”.
25 Article 21B (offences) amended
In Article 21B(1) for
sub-paragraph (k) there is substituted –
“(k) Article
20E (returns: partnerships);
(l) Article
135C (secretary of LLC to provide returns).”.
26 Article 55 (persons chargeable under
Schedule A) amended
In Article 55(2) for “to 76C”
there is substituted “to 76D”.
27 Article 74 (partnership statements and
assessments) substituted
For Article 74 there is
substituted –
(1) For the purposes of this Law, a trade or
profession carried on by a general partnership with a view to profit or gain is
to be treated as carried on in partnership by its partners and not by the
general partnership as such.
(2) Accordingly, the property of the general
partnership is to be treated for those purposes as partnership property of the
partners and not as property of the general partnership.
(3) Subject to the provisions of this Article,
the provisions of this Law apply to the profits and gains of a partner in a
general partnership.”.
28 Article 75 (changes of proprietor) amended
In Article 75 –
(a) paragraph (1) is
deleted;
(b) in paragraph (2) for “paragraph
(1)” there is substituted “Article 75A”.
29 Article 75A (change of partner) inserted
After Article 75 there is
inserted –
(1) Where this Article applies a partnership’s
trade, profession, business or vocation is deemed to have ceased and a new
partnership’s trade, profession, business or vocation is deemed to commence.
(2) This Article applies where there is a
change in the partners of a partnership and that change represents a change of
50% or more –
(a) in
the entitlement of the assets in the partnership before the change in partners;
or
(b) in
the collective voting entitlement of the partnership.
(3) For the purposes of Article 106A, the basis
period ends on the date that the partnership is deemed to have ceased and a new
basis period commences on the date the partnership is deemed to have
commenced.”.
30 Article 76 (partnerships controlled
abroad) deleted
Article 76 is deleted.
31 Article 76A (limited partnerships) amended
In Article 76A –
(a) for paragraph (3) there
is substituted –
“(3) For the purposes of this Law, a trade,
profession, business or vocation carried on by a limited partnership is to be
treated as carried on in partnership by its partners and not by the limited
partnership as such.
(3A) Accordingly, the property of the limited
partnership is to be treated for those purposes as partnership property of the
partners and not as property of the limited partnership.”;
(b) paragraph (5) is deleted.
32 Article 76B (incorporated limited
partnerships) amended
In Article 76B paragraphs (5)
and (7) are deleted.
33 Article 76C (separate limited
partnerships) amended
In Article 76C paragraphs (5)
and (7) are deleted.
34 Article 76D (limited liability
partnerships) amended
In Article 76D paragraphs
(5), (7), (8) and (9) are deleted.
35 Article 76E (foreign limited liability
partnerships) substituted
For paragraphs (1) to (10) of
Article 76E there is substituted –
(a) may
approve a specific foreign limited liability partnership; and
(b) must
approve a foreign limited liability partnership established under approved
legislation.
(4) At the start of each year, the Comptroller
must publish a list of approved legislation and must, as soon as practicable, update
the list during that year.”.
36 Article 106A (allowances and balancing
adjustments) amended
In Article 106A –
(a) in paragraph (6)
before “The disposal value” there is inserted “Subject to paragraph (6A),”;
(b) after paragraph (6)
there is inserted –
“(6A) Where a partnership is deemed to have ceased
under Article 75A, the deemed disposal value of the plant and machinery
is –
(a) the
price which it would fetch if sold on the open market; or
(b) if
the price which it would fetch if sold on the open market exceeds the capital
expenditure incurred by the partnership on the provision of the machinery or
plant for the purposes of the partnership, the value of capital expenditure.
(6B) Where a partnership is deemed to have
commenced under Article 75A it is deemed to have acquired that plant and
machinery at the same value it is deemed to have been disposed of under
paragraph (6A).”.
37 Article 106AB (special provisions if
assets transferred to successor to trade) amended
In Article 106AB –
(a) in paragraph (1)(a) “in
the proviso to Article 75(1) or” is deleted;
(b) after paragraph (1) there
is inserted –
“(1A) This Article also applies if a partner (the
“successor”) succeeds a partner (the “predecessor”) in a partnership and
Article 75A does not apply.”.
Part 3
Customs
and Excise (Jersey) Law 1999 amended
38 Customs and Excise (Jersey)
Law 1999 amended
This Part amends the Customs and Excise (Jersey) Law 1999.
39 Article 68 (review of decisions) amended
In Article 68 –
(a) paragraph (1)(a)(i)
is deleted;
(b) in paragraph (5),
sub-paragraphs (a) and (b) are deleted;
(c) paragraph (6) is
deleted.
40 Article 68A (appeal to Commissioners)
inserted
After Article 68 there is
inserted –
“68A Appeal to Commissioners
(1) Any person aggrieved by a decision made by
the Agent of the Impôts to which this Article applies may appeal to the
Commissioners by notifying the Agent of the Impôts in writing within one month
of such decision being communicated.
(2) This Article applies to a
decision made by the Agent of the Impôts in relation to any decision
of an officer which –
(a) affects
the liability of any person to pay any duty;
(b) affects
the eligibility of any person from relief from or repayment of any duty; or
(c) imposes or applies any
conditions, limitations, restrictions, prohibitions or other requirements under
Article 5(1), 39 or 41.
(3) Part 6 of the Income Tax Law applies, with
the necessary modifications, to an appeal under this Article as if it were an
appeal under that Law against an assessment.
(4) Where an appeal is made under paragraph (1),
the decision being appealed is not suspended pending the final determination or
withdrawal of the appeal.
(5) In this Article “Commissioners” means a
Commission of Appeal constituted under Article 5 of the Revenue Administration (Jersey) Law 2019.”.
41 Excise duty: tobacco
In Schedule 1, Part 2 for the
table in paragraph 6 there is substituted –
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(a) unprocessed tobacco
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531.75
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(b) cigars
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609.24
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(c) cigarettes
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696.54
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(d) hand-rolling tobacco
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696.54
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(e) processed tobacco other than types (b) to (d)
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554.12”.
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42 Excise duty: motor vehicles
- general
In Schedule 1, Part 2 for
paragraph 8(4) and (5) there is substituted –
“(4) For
motor vehicles (other than commercial vehicles) that have an established CO2 mass emission figure, vehicle emissions duty
is charged at the following rates for the year in which it is payable –
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0-50
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0
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51-75
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73.00
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76-100
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218.00
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101-125
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383.00
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126-150
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621.00
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151-175
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1,188.00
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176-200
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3,500.00
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201 or more
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6,105.00
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(5) For
motor vehicles (other than commercial vehicles) that do not have an established
CO2 mass emission figure, vehicle
emissions duty is charged at the following rates for the year in which it is
payable –
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500 or less
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0
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501-1400
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291.00
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1401-1800
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515.00
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1801-2000
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740.00
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2001-2500
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1,122.00
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2501-3000
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1,848.00
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3001-3500
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3,500.00
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3501 or more
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6,105.00”.
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Part 4
Goods
and Services Tax (Jersey) Law 2007 amended
43 Goods and Services Tax
(Jersey) Law 2007 amended
This Part amends the Goods and
Services Tax (Jersey) Law 2007.
44 Article 23 (where goods supplied) amended
For Article 23(3)
there is substituted –
“(3) If
the supply of goods involves their removal to Jersey –
(a) the goods are treated as
supplied in Jersey if either Condition A or Condition B is met; and
(b) in any other case, the
goods are treated as supplied outside Jersey.
(3A) Condition
A is met if –
(a) the goods are supplied by
a person (“P”) in the course or furtherance of a business;
(b) P belongs in a country
other than Jersey; and
(c) the goods are supplied
directly to an individual at an address in Jersey.
(3B) Condition
A is also met if –
(a) Paragraph (3A) applies to
P; and
(b) P supplies goods directly
to a person or business in Jersey that is registered or liable to be registered
for GST.
(3C) Condition
B is met if the supply is treated, under Article 21A, as being made by the
operator of an online marketplace.”.
45 Article 26 (when goods supplied) amended
In Article 26 after
paragraph (2) there is inserted –
“(3) In
paragraph (1)(aa), the reference to the “sale contract” is a reference to the
contract for the sale of the goods, entered into between –
(a) the person supplying the
goods (where Condition A in Article 23(3A) or (3B) is met) or the operator
of the online marketplace (where Condition B in Article 23(3C) is met);
and
(b) the individual to whom
the goods are supplied.”.
46 Article 60 (entities eligible for listing
as international services entities) amended
In Article 60 –
(a) in paragraph (1)
after sub-paragraph (g) there is inserted –
“(ga) a limited liability company
that meets the conditions set out in paragraph (2);”;
(b) in paragraph (2) for “or
(d)” there is substituted “, (d) or (ga)”.
(c) in paragraph (5) after
sub-paragraph (c) there is inserted –
Part 5
Stamp
Duties and Fees (Jersey) Law 1998 amended
47 Stamp Duties and Fees (Jersey) Law 1998 amended
This Part amends the Stamp Duties and
Fees (Jersey) Law 1998.
48 Article
1 (interpretation) amended
In Article 1 –
(a) after the definition
“item” there is inserted –
(b) after the definition “net
value” there is inserted –
49 Article 8A (statements of information)
inserted
After Article 8 there is
inserted –
“8A Relevant
properties: statements of information
(a) whether
the property is a dwelling acquired for use as the main residence of that
person; and
(b) whether
the property is a dwelling acquired for the purpose of it forming part of the
stock of a trade taxable under Article 51(1)(b) of the Income Tax (Jersey)
Law 1961.
(2) The
statement must include a declaration by the person to whom the property is
transferred that the statement is, to the best of that person’s knowledge and
belief, true, complete and correct.
(3) For
the purposes of this Article a “relevant contract” is any transaction that
falls within the following entries in item 13 in paragraph 3 of
Schedule 1 –
(a) entry (a);
(b) entry (c);
(c) entry (h);
(d) entry (j);
(e) entry (k);
(f) entry (l).”.
50 Article 11 (offences) amended
In Article 11 after
paragraph (2) there is inserted –
“(3) A person commits an offence and is liable to
imprisonment for 6 months and to a fine of level 3 on the standard
scale if that person makes a statement required under Article 8A which the
person knows to be false or misleading in a material particular.”.
51 Schedule
1 (judicial fees) amended
In Schedule 1 –
(a) after paragraph 2 (bands
relating to value in item 13) there is inserted –
“2A Further bands relating to
value in item 13
The table set out in this paragraph is to be read as included in
each paragraph of item 13 where there is an entry “See table in paragraph 2A”.
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(i)
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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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Contract
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Greffier
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(ii)
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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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Contract
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Greffier
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(iii)
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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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Contract
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Greffier
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(iv)
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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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Contract
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Greffier
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(v)
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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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Contract
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Greffier
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(vi)
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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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Contract
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Greffier
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(vii)
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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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Contract
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Greffier
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(viii)
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exceeds £2,000,000 but does not exceed £3,000,000
|
£134,500 in respect of the first £2,000,000 plus £10 for each £100
or part of £100 in excess thereof
|
Contract
|
Greffier
|
|
(ix)
|
exceeds £3,000,000 but does not exceed £6,000,000
|
£234,500 in respect of the first £3,000,000 plus £12.50 for each £100
or part of £100 in excess thereof
|
Contract
|
Greffier
|
|
(x)
|
exceeds £6,000,000
|
£609,500 in respect of the first £6,000,000 plus £13.50 for each £100
or part of £100 in excess thereof
|
Contract
|
Greffier”;
|
(b) in item 13 of the
table in paragraph 3–
(i) in
entries (a), (c), (h), (j), (k) and (l)(2) for “SEE TABLE IN PARAGRAPH 2” there
is substituted –
“IN RELATION TO PROPERTY THAT IS NOT RELEVANT PROPERTY SEE TABLE IN
PARAGRAPH 2
IN RELATION TO PROPERTY THAT IS RELEVANT PROPERTY SEE TABLE IN
PARAGRAPH 2A”,
(ii) in entry (l)(1) for
entries (i) and (ii) there is substituted –
|
“(i) does not
exceed £100,000
|
(A) In relation to property that is not relevant property, 50p for
each £100 or part of £100 subject to a minimum of £10
(B) In relation to property that is relevant property, £3.50 for
each £100 or part of £100 subject to a minimum of £10
|
Contract
|
Greffier
|
|
(ii) exceeds
£100,000
|
(A) In relation to
property that is not relevant property, £500 in respect of the first
£100,000, plus 75p for each £100 or part of £100 in excess
(B) In relation to
property that is relevant property, £3,500 in respect of the first £100,000
plus £3.75 for each £100 or part of £100 in excess of that
|
Contract
|
Greffier”.
|
Part 6
Taxation
(Land Transactions) (Jersey) Law 2009 amended
52 Taxation (Land Transactions) (Jersey) Law 2009 amended
This Part amends the Taxation (Land
Transactions) (Jersey) Law 2009.
53 Article 5 (delivery of statements in
pursuance of notices) amended
In Article 5 paragraph
(5) is deleted.
54 Schedule
(value of transaction and rate of LTT applicable) amended
In the Schedule –
(a) in the following
provisions for “£80” there is substituted “£90” –
(i) paragraph 2(1),
(ii) paragraph 3,
(iii) paragraph 3A(3)(a) and
(b)(i),
(iv) paragraph 3B(2),
(v) paragraph (4)(3);
(b) after paragraph 4 there
is inserted –
(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 –
|
|
|
|
does not exceed £50,000
|
£3.50p each £100 or part of £100 subject to a minimum of £10
|
|
exceeds £50,000 but does not exceed £300,000
|
£1,750 in respect of the first £50,000, plus £4.50 for each £100
or part of £100 in excess thereof
|
|
exceeds £300,000 but does not exceed £500,000
|
£13,000 in respect of the first £300,000, plus £5 for each £100 or
part of £100 in excess thereof
|
|
exceeds £500,000 but does not exceed £700,000
|
£23,000 in respect of the first £500,000, plus £6 for each £100 or
part of £100 in excess thereof
|
|
exceeds £700,000 but does not exceed £1,000,000
|
£35,000 in respect of the first £700,000, plus £6.50 for each £100
or part of £100 in excess thereof
|
|
exceeds £1,000,000 but does not exceed £1,500,000
|
£54,500 in respect of the first £1,000,000 plus £7.50 for each £100
or part of £100 in excess thereof
|
|
exceeds £1,500,000 but does not exceed £2,000,000
|
£92,000 in respect of the first £1,500,000 plus £8.50 for each £100
or part of £100 in excess thereof
|
|
exceeds £2,000,000 but does not exceed £3,000,000
|
£134,500 in respect of the first £2,000,000 plus £10 for each £100
or part of £100 in excess thereof
|
|
exceeds £3,000,000 but does not exceed £6,000,000
|
£234,500 in respect of the first £3,000,000 plus £12.50 for each £100
or part of £100 in excess thereof
|
|
exceeds £6,000,000
|
£609,500 in respect of the first £6,000,000 plus £13.50 for each £100
or part of £100 in excess thereof”;
|
(c) in the following
provisions for “£60” there is substituted “£90” –
(i) paragraph 6(2),
(ii) paragraph 7(2);
(d) in paragraph 8 for “£160”
there is substituted “£180”;
(e) in paragraph 9 for “£80”
there is substituted “£90”.
Part 7
Taxation
(Enveloped Property Transactions) (Jersey) Law 2022 amended
55 Taxation (Enveloped
Property Transactions) (Jersey) Law 2022 amended
This Part amends the Taxation
(Enveloped Property Transactions) (Jersey) Law 2022.
56 Article
7 (calculation of charge to tax) amended
In Article 7 –
(a) in paragraph (1) for
“£80” there is substituted “£90”;
(b) in paragraph (3) –
(i) in sub-paragraph (b) after “to which it
relates” there is inserted “for properties to which the standard rate applies”,
(ii) after sub-paragraph (b)
there is inserted –
“(c) column 3 sets out the
calculation of the variable element of the amount of tax in respect of the
market value range to which it relates for properties to which the higher rate
applies.”;
(c) in paragraph (4) –
(i) in sub-paragraph (b) after “to which
it relates” there is inserted “for properties to which the standard rate
applies”,
(ii) after sub-paragraph (b)
there is inserted –
(d) after paragraph (4) there
is inserted –
(a) the
higher rate applies where a significant interest in an entity is acquired by a
person, and that entity or its controlled entity own a property that is a
dwelling acquired for a purpose other than use as the main residence of the
person by whom the significant interest is acquired, but does not apply where
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; and
(b) the
standard rate applies to a dwelling to which the higher rate does not apply,
and in this paragraph “main residence” means the property that is
occupied as the main residence whether or not it is in Jersey.”.
57 Schedule
2 (calculation of variable element of tax) amended
In Schedule 2 for Table B
and Table C there is substituted –
“table b
enveloped property used for domestic purposes
|
|
|
|
|
Exceeding £500,000 but not
exceeding £700,000
|
£8,000 in respect of the first £500,000
plus £3 for each £100 or part of £100 in excess of that
|
£23,000 in respect of the first
£500,000 plus £6 for each £100 or part of £100 in excess of that
|
|
Exceeding £700,000 but not
exceeding £1,000,000
|
£14,000 in respect of the first
£700,000 plus £3.50 for each £100 or part of £100 in excess of that
|
£35,000 in respect of the first
£700,000 plus £6.50 for each £100 or part of £100 in excess of that
|
|
Exceeding £1,000,000 but not
exceeding £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 of that
|
£54,500 in respect of the first
£1,000,000 plus £7.50 for each £100 or part of £100 in excess of that
|
|
Exceeding £1,500,000 but not
exceeding £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 of that
|
£92,000 in respect of the first
£1,500,000 plus £8.50 for each £100 or part of £100 in excess of that
|
|
Exceeding £2,000,000 but not
exceeding £3,000,000
|
£74,500 in respect of the first
£2,000,000 plus £7 for each £100 or part of £100 in excess of that
|
£134,500 in respect of the first
£2,000,000 plus £10 for each £100 or part of £100 in excess of that
|
|
Exceeding £3,000,000 but not
exceeding £6,000,000
|
£144,500 in respect of the first
£3,000,000 plus £9.50 for each £100 or part of £100 in excess of that
|
£234,500 in respect of the first
£3,000,000 plus £12.50 for each £100 or part of £100 in excess of that
|
|
Exceeding £6,000,000
|
£429,500 in respect of the first
£6,000,000 plus £10.50 for each £100 or part of £100 in excess of that
|
£609,500 in respect of the first
£6,000,000 plus £13.50 for each £100 or part of £100 in excess of that
|
|
|
|
|
|
Exceeding £500,000 in the case
of property used for domestic purposes
|
£3,500 in respect of the first
£500,000, plus 75p for each £100 or part of £100 in excess of that
|
£18,500 in respect of the first £500,000,
plus £3.75 for each £100 or part of £100 in excess of that
|
|
Exceeding £700,000 in the case
of property used for non-domestic purposes
|
£5,000 in respect of the first
£700,000 plus 75p for each £100 or part of £100 in excess of that
|
Not applicable”.
|
Part 8
High value residents
58 Income Tax (Prescribed
Limit and Rate) (Jersey) Regulations 2013 amended
In Regulation 2 (prescribed limit) of the Income Tax (Prescribed Limit and Rate) (Jersey) Regulations 2013 in paragraphs (2) and (3A) for
“£725,000” there is substituted “£850,000”.
Part 9
Other
amendments and closing provisions
59 Social Security (Jersey)
Law 1974 amended
For paragraph 4(2) (LTC
contribution effective rate) of Schedule 1D to the Social Security (Jersey) Law 1974 there is substituted –
“(2) The LTC contribution
effective rate applicable in an employee’s case is determined in accordance
with the following formula –
Where –
A is the contribution effective
rate;
B is the amount of the
employee’s estimated LTC contribution for the year to which the rate applies,
calculated in accordance with paragraph 2A;
C is the employee’s total
LTC contributions for any year preceding the year to which the rate applies,
less any amount of contributions already paid for that preceding year, and any
costs recoverable in respect of unpaid contributions;
D is the amount of LTC
contributions already paid for the year to which the rate applies;
E is the estimated amount
of income for which the employee is liable to be assessed under the 1961 Law
for the year to which the rate applies;
F is the estimated
amount of income from which the employee is liable to allow the deduction of
tax under the 1961 Law for the year to which the rate applies;
G is the estimated amount
of the employee’s allowable deductions under the 1961 Law (except for
Article 131I of that Law) in relation to the employee’s earnings for the
year to which the rate applies; and
H is the estimated amount
of the employee’s allowable deductions under Article 131I of the 1961 Law
for the year to which the rate applies.”.
60 Taxation (Partnerships – Economic Substance) (Jersey) Law 2021 amended
In Article 1 of the Taxation (Partnerships – Economic Substance) (Jersey) Law 2021 –
(a) in the definition
“limited liability partnership” after “Limited Liability
Partnerships (Jersey) Law 2017” there is inserted “or a foreign limited liability partnership
approved by the Comptroller under Article 76E of the 1961 Law”;
(b) in the definition
“partnership” for sub-paragraph (f) there is substituted –
“(f) a
general partnership within the meaning of Article 3 of the 1961 Law;”.
61 Article 36 and Article
37(4) of the Finance (2022 Budget) (Jersey) Law 2022 repealed
Article 36 and Article
37(4) of the Finance (2022 Budget) (Jersey) Law 2022
are repealed.
62 Goods and Services Tax
(International Services Entities) (Jersey) Regulations 2008 amended
In Regulation 4(1)(g) of the Goods and Services Tax
(International Services Entities) (Jersey) Regulations 2008 for “or limited liability partnership” there is substituted “,
limited liability partnership or limited liability company”.
63 Taxation (Land Transactions) (LTT Statements and Receipts) (Jersey)
Order 2019 amended
In Article 2(2) (LTT
statement for transactions under Article 3(1)(a) or (b) of the Law) of the Taxation (Land Transactions) (LTT Statements
and Receipts) (Jersey) Order 2019 –
(a) after sub-paragraph (d)
there is inserted –
“(da) a declaration as to whether
the property to which the share gives a right is being acquired for use as the
main residence of the person to whom the share is transferred;
(db) a declaration as to whether
the property to which the share gives a right is a dwelling being acquired for
the purpose of it forming part of the stock of a trade taxable under Article 51(1)(b)
of the 1961 Law;”;
(b) in sub-paragraph (e)
after clause (ii) there is inserted –
“(iia) under paragraph 5
(properties that are not main residences),”.
64 Taxation (Enveloped
Property Transactions) (Statements) (Jersey) Order 2022 amended
In Article 2(4) (statement
under Article 8 of the Law) of the Taxation (Enveloped
Property Transactions) (Statements) (Jersey) Order 2022 after sub-paragraph (c) there is inserted –
“(d) whether the property is a
dwelling that is being acquired for use as the main residence of the person by
whom the significant interest is acquired.
(e) whether the property is a
dwelling being acquired for the purpose of it forming part of the stock of a
trade taxable under Article 51(1)(b) of the 1961 Law of the person by
whom the significant interest is acquired.”.
65 Citation and commencement
(1) This
Law may be cited as the Finance (2023 Budget) (Jersey) Law 2023.
(2) Except
for Articles 44, 45 and 59, this Law comes into force on 1st January 2023.
(3) Articles
44, 45 and 59 come into force on 1st July 2023.