Finance (Jersey)
Law 2005
A LAW to prescribe the standard rate
of income tax for the year 2005; to amend further the Customs and Excise
(Jersey) Law 1999 so as to increase excise duty on tobacco and to amend further
the Stamp Duties and Fees (Jersey) Law 1998 so as to revise some of the
provisions in respect of judicial and probate fees; and for connected purposes.
Adopted by the
States 19th January 2005
Sanctioned by
Order of Her Majesty in Council 7th June 2005
Registered by the
Royal Court 8th
July 2005
THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have
adopted the following Law –
PART 1
INCOME TAX
1 Standard
rate of income tax for 2005
There shall be levied and charged in Jersey for the year 2005, in
accordance with the Income Tax (Jersey) Law 1961,[1] income tax at the standard
rate of 20 pence in the pound.
PART 2
EXCISE DUTY
2 Part
II of First Schedule amended
For paragraph 5 of Part II of the First Schedule to the
Customs and Excise (Jersey) Law 1999[2] there shall be substituted
the following paragraph –
There shall be charged on all
tobacco imported into or grown, produced or manufactured in Jersey excise duty
at the following rates –
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(a) on unprocessed tobacco
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£136.01 per
kilogramme
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(b) on cigars
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£147.16 per
kilogramme
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(c) on cigarettes
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£184.04 per
kilogramme
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(d) on hand-rolling tobacco
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£156.42 per
kilogramme
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(e) on other types of processed
tobacco not included in paragraphs (b) to (d)
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£142.43 per
kilogramme.”.
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3 Commencement
of Part 2
This Part shall be deemed to have come into force on 1st January
2005.
PART 3
STAMP DUTY
4 Interpretation
In Articles 5 to 8 a reference to a Part is a reference to a Part of
the First Schedule to the Stamp Duties and Fees (Jersey) Law 1998.[3]
5 Item
1 of Part 1 amended
In item 1 of Part 1 –
(a) in paragraph (a)
after the words “of this Part” there shall be inserted the words
“and that borrowing and that contract of purchase relate to the same
property and were both registered in the Public Registry and passed before the
Royal Court on the same date and”;
(b) in
paragraph (a) for the words “the property”, in both places
where those words occur, there shall be substituted the words “that
property”;
(c) after
paragraph (b) there shall be inserted the following paragraph –
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Item
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Stamp Duty
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Chargeable Document
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Designated Officer
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“(ba) Where an
acknowledgement of debt document specifies a new amount of borrowing (the
‘new borrowing document’) for a dwelling in respect of which
another acknowledgement of debt document specifying an amount of borrowing is
registered in the Public Registry and for which stamp duty has been paid (the
‘registered borrowing document’), and some or all of the amount
specified in the registered borrowing document remains unpaid (the
‘unpaid amount’) –
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(i) where the amount
of borrowing specified in the new borrowing document is less than or equal to
the unpaid amount
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£50
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Billet
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Greffier
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(ii) where the
amount of borrowing specified in the new borrowing document is greater than
the unpaid amount,
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(I) for the portion
of the amount that is equal to the unpaid amount, and
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£50
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Billet
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Greffier
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(II) for the portion of
the amount that is greater than the unpaid amount
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50p for each £100 or part of £100 of the amount to be
acknowledged subject to a minimum of £5
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Billet
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Greffier
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and
if the new borrowing document is for land on which a dwelling is to be
constructed and in respect of which there is a registered borrowing document
for the same land and dwelling and there is an unpaid amount, then
sub-paragraphs (i) and (ii) shall apply to the registration of that new
borrowing document for that land and that dwelling in the same way as they
apply to a registration of a new borrowing document for a dwelling
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The stamp duty specified in
paragraph (ba) for registration of a new borrowing document shall not be
substituted for the stamp duty specified in paragraph (c) unless the Greffier
is satisfied that –
(A) stamp duty has been
paid in respect of the registered borrowing document (whether under item 1(a)
or (c));
(B) the registered
borrowing document will be cancelled in the Public Registry (rayé) and replaced by the new borrowing
document;
(C) the person who has
acknowledged indebtedness in both the new borrowing document and the
registered borrowing document is the same person;
(D) the borrowing applies
to a dwelling that is –
(a) owned and occupied by the
person who has acknowledged indebtedness (the ‘borrower’) as his
or her sole place of residence in Jersey and the owner and occupier of the
dwelling on the date of registration of the registered borrowing document are
the same owner and occupier of the dwelling on the date on which the new borrowing
document is to be registered, or
(b) owned by a company and
occupied by a person (the ‘occupier’) as his or her sole place of
residence in Jersey who is entitled to occupy that dwelling by virtue of
owning shares in that company and the borrowing is undertaken by or on behalf
of the occupier and the occupier of the dwelling on the date of registration
of the registered borrowing document is the same occupier of the dwelling on
the date on which the new borrowing document is to be registered,
(or
if the dwelling is not yet constructed, it will comply with either sub-clause
(a) or (b) when constructed);
(E) the borrower to whom
clause (D)(a) applies or the occupier to whom clause D(b) applies is a person
to whom Regulation 1(1)(a) to (j) and (n)(ii) and (iii) of the Housing
(General Provisions) (Jersey) Regulations 1970[4] applies; and
(F) the new borrowing
document and the registered borrowing document relate to the same dwelling
(or where the dwelling is not yet constructed, the new borrowing document and
the registered borrowing document relate to the same land and the
construction of that dwelling on it).”.
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6 Item
13 of Part 1 amended
In item 13 of Part 1 –
(a) for
clause (C) of the proviso to paragraph (b) there shall be substituted
the following clause –
“(C) the purchaser satisfies the
designated officer that the purchaser has never previously been entitled to
occupy dwelling accommodation wherever situated (or would have been so entitled
if clause (B) applied) by virtue of having owned the accommodation, and
for the purposes of this clause ‘owned’ includes –
(a) having
held such accommodation on contract lease;
(b) having
owned such accommodation together with any other person;
(c) having
owned shares that confer entitlement to occupy such accommodation; and
(d) any
arrangement whereby such accommodation was held in the name of a nominee or
trustee, or of a company owned by such nominee or trustee, for the benefit of
the purchaser; and”; and
(b) in
paragraph (c) for the word “net” there shall be substituted
the word “gross”;
(c) in
paragraph (h) for sub-paragraph (ii) there shall be substituted the
following sub-paragraphs –
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“(ii) exceeds £50,000 but does
not exceed £300,000
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£250 in respect of the first £50,000, plus £1.50
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) exceeds £300,000 but
does not exceed £500,000
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£4,000 in respect of the first £300,000, plus £2
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) exceeds £500,000 but
does not exceed £700,000
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£8,000 in respect of the first £500,000, plus
£2.50 for each £100 or part of £100 in excess thereof
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Contract
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Greffier
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(v) exceeds
£700,000
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£13,000 in respect of the first £700,000, plus
£3 for each £100 or part of £100 in excess thereof
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Contract
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Greffier”;
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(d) for
paragraph (l) there shall be substituted the following paragraph –
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Item
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Stamp Duty
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Chargeable Document
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Designated Officer
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“(l) Of lease, sub-lease
or transfer or extension of lease or sub-lease, (subject as is hereinafter
provided, and except as provided by paragraphs (m) or (t) of this item)
where –
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(1) the annual rental
stipulated in the contract multiplied by the number of years for which the
contract provides that the lessee, sub-lessee or transferee shall have
possession of the demised premises (excluding any period in excess of 21
years) –
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(i) does not exceed
£100,000
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50p for 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) exceeds £100,000
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£500 in respect of the first £100,000, plus 75p for
each £100 or part of £100 in excess thereof
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Contract
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Greffier
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In calculating the fee payable under this
sub-paragraph –
(A) in determining the number of years to be
taken into account, any fraction of a year shall be reckoned as a full year
and any optional extension of the term of the lease or sub-lease shall be
included;
(B) in the case of a transfer or extension of
a lease or sub-lease, (except as hereinafter provided) the rental to be taken
as a basis for calculating the fee shall be the rental currently payable for
the demised premises at the date of the contract;
(C) where a lease or sub-lease is granted,
transferred or extended for less than the prevailing market rental of the
demised premises, a fee calculated on such rental shall be agreed with the
Greffier;
(D) any contract increasing the rental payable
in respect of an existing lease or sub-lease shall be deemed to be a contract
of lease for the purpose of this Law, and shall be subject to the fee
specified in this sub-paragraph in respect of the increased rental or any
part thereof on which stamp duty has not previously been paid under
sub-clause (C); and
(E) in the case of an extension of a lease or
sub-lease, the term of years on which stamp duty has previously been paid by
the lessee or sub-lessee may, at the discretion of the Greffier, be taken
into account in determining the fee to be paid under this sub-paragraph in
respect of the extension.
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(2) any additional consideration (other
than agent’s commission and legal fees) to whomsoever paid or payable
in respect of the transaction by the lessee, sub-lessee or transferee,
whether stipulated in the contract or not –
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Contract
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Greffier
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(i) does not exceed
£50,000
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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) exceeds £50,000
but does not exceed £300,000
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£250 in respect of the first £50,000, plus £1.50
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) exceeds £300,000 but
does not exceed £500,000
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£4,000 in respect of the first £300,000, plus £2
for each £100 or part £100 in excess thereof
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Contract
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Greffier
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(iv) exceeds £500,000 but
does not exceed £700,000
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£8,000 in respect of the first £500,000, plus
£2.50 for each £100 or part of £100 in excess thereof
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Contract
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Greffier
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(v) exceeds £700,000
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£13,000 in respect of the first £700,000, plus
£3 for each £100 or part of £100 in excess thereof
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Contract
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Greffier”;
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(e) for
paragraph (m) (ii) to (iv) there shall be substituted the following
sub-paragraphs –
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“(ii) exceeds £150,000
but does not exceed £175,000
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£62.50 in respect of the first £100,000 plus 12.5p for
each £100 or part of £100 in excess thereof, subject to a minimum
of £150
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Contract
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Greffier
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(iii) exceeds
£175,000 but does not exceed £200,000
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£125 in respect of the first £100,000 plus 25p for
each £100 or part of £100 in excess thereof, subject to a minimum
of £150
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Contract
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Greffier
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(iv) exceeds
£200,000 but does not exceed £250,000
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£187.50 in respect of the first £100,000 plus 37.5p
for each £100 or part of £100 in excess thereof, subject to a
minimum of £150
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Contract
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Greffier”;
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(f) for
clause (C) of the proviso to paragraph (m) there shall be substituted
the following clause –
“(C) the lessee or transferee satisfies
the designated officer that the lessee or transferee has never previously been
entitled to occupy dwelling accommodation wherever situated (or would have been
so entitled if clause (B) applied) by virtue of having owned the
accommodation, and for the purposes of this clause ‘owned’
includes –
(a) having
held such accommodation on contract lease;
(b) having
owned such accommodation together with any other person;
(c) having
owned shares that confer entitlement to occupy such accommodation; and
(d) any
arrangement whereby such accommodation was held in the name of a nominee or
trustee, or of a company owned by such nominee or trustee, for the benefit of
the lessee or transferee; and”.
7 Item
46 of Part 1 amended
In item 46 of Part 1 –
(a) in
paragraph (1) for sub-paragraph (a) and (b) there shall be substituted the
following sub-paragraphs –
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“(a) does
not exceed £50,000
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50p each £100 or part of £100, with a minimum fee of
£10.00
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Application
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Greffier
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(b) exceeds £50,000 but does not exceed
£300,000
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£250 in respect of the first £50,000, plus £1.50
for each £100 or part of £100 in excess thereof
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Application
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Greffier
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(c) exceeds £300,000 but does not exceed
£500,000
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£4,000 in respect of the first £300,000 plus £2
for each £100 or part of £100 in excess thereof
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Application
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Greffier
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(d) exceeds £500,000 but does not exceed
£700,000
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£8,000 in respect of the first £500,000, plus
£2.50 for each £100 or part of £100 in excess thereof
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Application
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Greffier
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(e) exceeds
£700,000
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£13,000 in respect of the first £700,000 plus
£3.00 for each £100 or part of £100 in excess thereof
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Application
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Greffier”;
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(b) in
the proviso for the words “Provided that” there shall be
substituted the words “Notwithstanding paragraphs (1) and (2)”;
(c) after
clause (A) of the proviso there shall be inserted the following clause –
“(AA) where
the applicant produces to the Greffier a letter from the Comptroller of Income
Tax confirming that it qualifies for exemption from income tax pursuant to
Article 115(a), (aa) or (ab) of the Income Tax (Jersey) Law 1961,[5] the only fee shall be the
fee payable under paragraph (2)(a) or, as the case may be, (b);”;
(d) in
clause (B) for the words “the fee shall be £5 per page subject
to a minimum of £10;” there shall be substituted the words
“the only fee payable shall be that specified in paragraph (2)(a)
or, as the case may be, (2)(b);”.
8 Item
9 of Part 3 amended
In item 9 of Part 3 –
(a) in
paragraph (1)(c), first column, the words “but not to exceed
£13,360,000” shall be deleted;
(b) paragraph
(1)(d) shall be deleted;
(c) in
paragraphs 9(2)(a) and (b) the words “, for each document registered
under this item” shall be deleted.
9 Commencement
of Part 3
This Part shall be deemed to have come into force on 1st January
2005.
PART 4
CLOSING PROVISION
10 Citation
This Law may be cited as the Finance (Jersey) Law 2005.
M.N. DE LA HAYE
Greffier of the States.
[1] Volume 1961-1962, pages 197 and 443, Volume 1963-1965, pages 97, 143, 178, 189,
423 and 454, Volume 1966-1967, page 523, Volume 1968-1969, pages 38 and 219,
Volume 1970-1972, pages 209, 305 and 382, Volume 1973-1974, page 275, Volume
1975-1978, pages 47, 148 and 257, Volume 1979-1981, pages 16, 157, 297 and 383,
Volume 1982-1983, page 46, Volume 1984-1985, page 76, Volume 1986-1987, pages
192 and 208, Volume 1988-1989, pages 222 and 380, Volume 1990-1991, pages 96,
432 and 1088, Volume 1992-1993, pages 36 and 121, Volume 1994-1995, pages
220 and 366, Volume 1996-1997, pages 264, 643 and 652, Volume 1998, pages 3 and
259, Volume 1999, pages 209, 390, 403 and 418, Volume 2000, page 290, Volume
2001, pages 123 and 145, Volume 2003, page 239 and Volume 2004, page 795.
[2] Volume 1999, page 610 and Volume 2004,
page 752.
[3] Volume 1998, page 113 and R&O 75/2004.
[4] R&Os 5444, 5981, 6651, 6903, 8866, 9446, 16/2001, 14/2002, 135/2002,
52/2003 and 148/2003.
[5] Volume 1961-1962, page 272, Volume 1963-1965,
page 144 and Volume 1975-1978, page 47.