Arrangement

part 1  3

part 2  20

part 3  23

part 4  26

part 5  27

part 6  27

A LAW to set the standard rate of income tax for 2018 and to amend further the Income Tax (Jersey) Law 1961, the Goods and Services Tax (Jersey) Law 2007, the Customs and Excise (Jersey) Law 1999, and the Stamp Duties and Fees (Jersey) Law 1998

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

“(2A) No deductions shall be made –

(a)     for any interest of money, or any annuity or other annual payment;

(b)     for or in respect of rates –

(i)      which, under the Rates (Jersey) Law 2005[3], are charged on the owner of the land, and

(ii)      which the person chargeable in respect of the profits and gains is liable to defray.

(2B)   For the further avoidance of doubt, no deduction shall be made for any payment, or part of a payment –

(a)     which is or which represents payment in respect of such rates as mentioned in paragraph (2A)(b)(i); and

(b)     which is made to the owner of the land by the person chargeable in respect of the profits and gains (including by any agent on behalf of such a person).

(2C)   In paragraphs (2A) and (2B), reference to the owner of the land is to be construed in accordance with the Rates (Jersey) Law 2005.”.

“ ‘financial services company’ has the meaning given in Article 123D;”.

“(3)    The Minister may by Order amend the definition ‘collective investment fund’.”.

“(4)    A ‘financial services company’ is a company described in any of the following sub-paragraphs, namely one which –

(a)     is registered under the Financial Services (Jersey) Law 1998[4] to carry out –

(i)      investment business,

(ii)      trust company business,

(iii)     fund services business, as an administrator, custodian or registrar in relation to an unclassified fund or an unregulated fund, or

(iv)     general insurance mediation business as described in either class P or class Q in Part 3 of the Schedule to the Financial Services (Financial Service Business) (Jersey) Order 2009[5];

(b)     is registered under the Banking Business (Jersey) Law 1991[6], other than a company registered for business continuity under that Law, pursuant to Article 9A of the Banking Business (General Provisions) (Jersey) Order 2002[7];

(c)     holds a permit under the Collective Investment Funds (Jersey) Law 1988[8] by virtue of being a functionary who is an administrator, registrar or custodian mentioned in Part 2 of the Schedule to that Law;

(d)     holds either a Category A or Category B permit under the Insurance Business (Jersey) Law 1996[9]; or

(e)     is a company trading in the provision of credit facilities to customers by way of making any advance or granting of any credit including (but not limited to) –

(i)      the provision, in connection with the supply of goods by hire purchase, leasing, conditional sale or credit sale, of credit in instalments for which a separate charge is made and disclosed to the customer, and

(ii)      any assignment to the company of an advance or credit repayable by the customer to a person other than the company.

(5)     The Minister may by Order amend the definition ‘financial services company’ in paragraph (4).

(6)     For the purposes of paragraph (4)(e), ‘customer’ shall not include any person which, in relation to the company by which credit facilities are provided, is a connected person, and for this purpose ‘connected person’ has the meaning given by Article 3A(4) and (5).”.

“76E Foreign limited liability partnerships

(1)     For the purposes of this Law, a trade, profession, business or vocation carried on by a foreign limited liability partnership with a view to profit or gain shall be treated as carried on in partnership by its partners, and not by the foreign limited liability partnership as such.

(2)     Accordingly, the property of the foreign limited liability partnership shall be treated for those purposes as partnership property of the partners, and not as property of the foreign limited liability partnership.

(3)     Subject to the provisions of this Article, the provisions of this Law apply to the profits or gains of a partner in a foreign limited liability partnership.

(4)     Paragraph (3) shall not apply to the profits or gains derived from international activities of a partner in a foreign limited liability partnership who is not resident in Jersey.

(5)     Articles 74 and 76 shall not apply to a partner in a foreign limited liability partnership.

(6)     Articles 86 and 87 shall not apply where a payment referred to in those Articles is made by or through a foreign limited liability partnership.

(7)     Paragraph (8) applies where a partner in a foreign limited liability partnership is resident in Jersey, or is non-resident in Jersey and entitled to profits or gains other than those excluded from the provisions of this Law by paragraph (4).

(8)     Where this paragraph applies the responsible partner shall, when required to do so by any general notice or by notice sent to the responsible partner in accordance with paragraph (9), prepare and deliver a statement of the profits or gains arising to the partners from the activities of the foreign limited liability partnership.

(9)     For the purposes of paragraph (8) the ‘responsible partner’ is –

(a)     an individual partner of the foreign limited liability partnership who is resident in Jersey, and if there is more than one such individual, the first such individual named in the partnership agreement;

(b)     in the case where there is no such individual as described in sub-paragraph (a), but there is a partner in the foreign limited liability partnership having a registered address in Jersey, that partner; or

(c)     in the case where there is no such individual as described in sub-paragraph (a) nor such a partner as described in sub-paragraph (b), the first partner named in the partnership agreement.

(10)    In this Article –

‘foreign limited liability partnership’ refers to an arrangement –

(a)     whereby a trade, profession, business or vocation is carried on by 2 or more persons in partnership;

(b)     formed outside Jersey in a jurisdiction approved by the Comptroller for the purposes of this Article;

‘partnership agreement’ means such an agreement of the partners in writing as the Comptroller may reasonably consider to be equivalent in nature and effect to the declaration of a limited liability partnership;

‘profits or gains’ does not include profits or gains of a capital nature,

and in this paragraph ‘declaration’ and ‘limited liability partnership’ have the meanings given by Article 76D.”.

“part 17 1A

large corporate retailers

123H Interpretation of Part 17 1A

(1)     In this Part –

‘associated company’ means a company –

(a)     whose retail turnover is 60% or more of the total amount it derives during a relevant financial period from any trade carried on in Jersey; and

(b)     which is controlled by one or more persons who have control over another company whose retail turnover is 60% or more of the total amount it derives during a relevant financial period from any trade carried on in Jersey;

‘control’, in relation to a company (‘controlled company’), means the power of one or more persons (‘controlling person’) to secure that the affairs of the controlled company are conducted in accordance with the wishes of the controlling person by means of any of the following (or any combination of them) –

(a)     the holding of shares (whether in the controlled company or any other company);

(b)     the possession of voting power in or in relation to the controlled company;

(c)     the holding of powers conferred by the articles of association or other document regulating the controlled company or any other company;

‘group’ means 2 or more associated companies which have the same controlling person;

‘gross amount retail turnover test’ has the meaning given in Article 123J;

‘Jersey retail sale’ means a retail sale to a person resident in Jersey or who, at the time of the sale, is physically present in Jersey;

‘large corporate retailer’ has the meaning given in Article 123I;

‘percentage retail turnover test’ has the meaning given in Article 123K;

‘relevant financial period’, in relation to a particular year of assessment, means a company’s financial period, or aggregate of financial periods if more than one, which is taken into account for the purpose of calculating the company’s liability to tax for that particular year of assessment;

‘retail sale’ means the sale of any goods for consumption or use other than where –

(a)     the goods are sold for the purpose of onward sale or supply (including goods sold for the purpose of being incorporated into other goods for onward sale or supply) in the course of a trade or business; or

(b)     the goods comprise food or drink which is –

(i)      intended for consumption at the point of sale (regardless of whether the food or drink is consumed elsewhere than at the point of sale), or

(ii)      prepared to order at the point of sale for immediate consumption off the premises;

‘retail turnover’ means the cumulative total amount derived from Jersey retail sales during a relevant financial period.

(2)     The Minister may, by Order, amend the definition ‘retail sale’.

123I  Meaning of ‘large corporate retailer’ and application of Article 123C

(1)     A ‘large corporate retailer’ is a company which –

(a)     is regarded as resident in Jersey or which has a permanent establishment in Jersey;

(b)     meets the gross amount retail turnover test; and

(c)     meets the percentage retail turnover test.

(2)     A company which is a large corporate retailer for a year of assessment is not a company to which Article 123C applies for that year of assessment.

123J  Meaning of ‘gross amount retail turnover test’

(1)     Subject to paragraph (2), a company meets the gross amount retail turnover test if its retail turnover is not less than £2 million for a relevant financial period.

(2)     Subject to paragraph (4), if the relevant financial period for a company is greater or less than 12 months, for the figure of £2 million in paragraph (1), there is substituted the figure calculated as follows –

(A/365) x £2 million

Where –

A is the number of days in the relevant financial period.

(3)     Where a company is an associated company, the value of its retail turnover is calculated for the purposes of this Article by aggregating the retail turnover of all the associated companies in the same group.

(4)     If an associated company has a relevant financial period that is greater or less than 12 months, for the figure of £2 million in paragraph (1), there is substituted the figure calculated as follows –

(A/365) x £2 million

Where A is the number of days –

(a)     in the relevant financial period of the associated company, if all the associated companies in the group have relevant financial periods of the same length; or

(b)     in the shortest relevant financial period of an associated company in the group if the relevant financial periods of the associated companies in the group are not all of the same length.

123K Meaning of ‘percentage retail turnover test’

A company meets the percentage retail turnover test if its retail turnover is 60% or more of the total amount it derives during a relevant financial period from any trade carried on in Jersey.

123L Computation of tax under Schedule D

(1)     In this Article, ‘income, profits and gains’ means income, profits and gains chargeable under Schedule D for a relevant financial period after deduction of allowances or reliefs except that, for the purpose of calculating the amount of income, profits and gains no account shall be taken of any of the following –

(a)     deductions and credits under Article 88; and

(b)     credits under Article 112.

(2)     A large corporate retailer whose income, profits or gains are of an amount less than £500,000 shall be charged to tax under Schedule D at the rate of 0%.

(3)     A large corporate retailer whose income, profits and gains are of an amount greater than £750,000 shall be charged to tax under Schedule D at the rate of 20%.

(4)     A large corporate retailer whose income, profits and gains are of an amount that is equal to or greater than £500,000 but not exceeding £750,000 shall be charged to tax under Schedule D of an amount calculated as follows –

(a)     Step 1

calculate A x 20%;

(b)     Step 2

calculate (£750,000 – A) x 40%;

(c)     Step 3

calculate B – C

Where –

A is the amount of profits or gains chargeable to tax under Schedule D;

B is the amount after applying Step 1;

C is the amount after applying Step 2.

(5)     References in this Law to a rate charged under this Article mean, in a case where paragraph (4) applies, a rate calculated as follows –

(D/A) x 100

Where –

D is the amount charged to tax under paragraph (4);

A is the amount of profits or gains chargeable to tax under Schedule D.

(6)     If a large corporate retailer has a relevant financial period that is greater or less than 12 months, for the figures of £500,000 and £750,000 wherever they appear in paragraphs (2), (3) and (4), there shall be deemed to be substituted the figure calculated as follows –

(A/365) x £500,000 or £750,000 as the case requires

Where A is the number of days in the relevant financial period.

(7)     For the purpose of this Article, where a large corporate retailer is an associated company, paragraph (2), (3) or (4), as appropriate, is applied to the aggregate income, profits and gains of all the associated companies in the same group except that, for the purpose of calculating such income, profits and gains, any loss suffered by any associated company in the group shall be deemed as zero (regardless of whether the loss is surrendered under Article 123EA).

(8)     If an associated company has a relevant financial period that is greater or less than 12 months, for the figures of £500,000 and £750,000 wherever they appear in paragraphs (2), (3) and (4), there shall be deemed to be substituted the figure calculated as follows –

(A/365) x £500,000 or £750,000 as the case requires

Where A is the number of days –

(a)     in the relevant financial period of the associated company, if all the associated companies in the group have financial periods of the same length; or

(b)     in the shortest relevant financial period of an associated company in the group if the financial periods of associated companies in the group are not all the same length.

(9)     Where paragraph (4) applies to any associated companies in a group, the amount charged to tax under Schedule D shall be apportioned between those companies to which paragraph (4) applies on a pro rata basis.

123M     Application of Article 81O (shareholder loans)

In Article 81O(1), the reference to a company to which Article 123C or 123D applies shall include a reference to a company which is a large corporate retailer and the remaining provisions of that Article and Article 81P shall be construed accordingly.

123N Application of Case IX – Articles 81Q to 81Z (company distributions)

(1)     This Article applies where a company is either or both of the following –

(a)     a company to which Article 123C applies in respect of a year of assessment and, in respect of another year of assessment, a large corporate retailer; or

(b)     in respect of a year of assessment, a large corporate retailer chargeable to tax under Article 123L at the rate of 0%,

and such a company is referred to in this Article as a ‘zero rated retailer’.

(2)     Articles 81Q to 81Z shall apply to a zero rated retailer with the following modifications –

(a)     in Article 81Q(1) –

(i)      the definition ‘relevant company’ shall be deemed to include a zero rated retailer,

(ii)      in sub-paragraph (a) of the definition ‘specified profits’, the reference to a financial period of a company to which Article 123C applies shall be deemed to include the financial period of a large corporate retailer chargeable to tax under Article 123L at the rate of 0% for that financial period;

(b)     in relation to a distribution made by a zero rated retailer, for the purposes of determining when a ‘relevant time’ occurs, as defined in Article 81Q(1), the rate of tax at which the zero rated retailer is charged for the year of assessment in which the distribution is made is irrelevant.

123O Application of Article 88 (dividends)

(1)     This Article applies where –

(a)     the rate of tax charged on a large corporate retailer under Article 123L is greater than 0% and less than 20%; and

(b)     the large corporate retailer declares a dividend out of income, profits or gains charged at that rate.

(2)     Where this Article applies, Article 88 shall apply with the following modifications –

(a)     references to the standard rate in Article 88(2) shall be deemed to refer to the rate charged under Article 123L;

(b)     the reference in Article 88(5)(a) to a person being a company to which Article 123C applies shall include a large corporate retailer taxed at a rate of 0% under Schedule D for that year of assessment;

(c)     where the person chargeable to tax on the dividend is a large corporate retailer, Article 88(5A) shall be subject to a requirement that the credit shall be of an amount equal to whichever is the lesser of –

(i)      the amount of the deduction from the dividend under Article 88(2), and

(ii)      the amount of the dividend multiplied by the rate of tax charged on the person chargeable to tax under Article 123L.

123P Application of Articles 107, 107A (relief for losses)

A company which is a large corporate retailer shall not be entitled to make an application under Article 107(1) or 107A(1).

123Q Application of Part 14A – Articles 114A to 114C (foreign company income relief)

In Article 114A, the definition ‘qualifying company’ shall be deemed to include a large corporate retailer and the remaining provisions of Part 114A shall be construed accordingly.

123R Application of Article 118B (non-resident exemption)

A person who is not resident in Jersey and who is paid a dividend from which tax is deducted by a large corporate retailer under Article 88 as applied by Article 123O, shall, where the deduction is less than the standard rate, be exempt from the balance of tax that would otherwise be due in respect of the dividend.

123S  Application of Article 123EA (group relief)

Article 123EA shall apply to a large corporate retailer with the following modifications –

(a)     the definition ‘qualifying company’ shall be deemed to include a large corporate retailer;

(b)     a ‘group’, as defined in that Article, may consist of –

(i)      only qualifying companies which are large corporate retailers, or

(ii)      qualifying companies 2 or more of which are large corporate retailers and one or more of which is a company to which Article 123C applies; and

(c)     the claimant company and surrendering company must each be a large corporate retailer.”.

“(3)    An approved Jersey scheme may permit the pension holder to elect to commute the whole of the fund value if, at the time the election is made –

(a)     the value of the fund to be commuted does not exceed £19,000; and

(b)     the aggregate of –

(i)      the value of the fund to be commuted, and

(ii)      all lump sums that the pension holder has previously commuted under this paragraph,

does not exceed £50,000.”.

“and

(d)     an amount paid to the pension holder pursuant to an election made under Article 131CE(3).”.

“131CH Permitted transfers – bulk transfers

(1)     The scheme manager of an approved Jersey occupational pension scheme may, where notification is given in accordance with paragraph (2) and subject to the prior written approval of the Comptroller, transfer the whole or part of the fund to another approved Jersey occupational pension scheme.

(2)     The scheme manager of the approved Jersey occupational pension scheme must notify the Comptroller, in writing, of –

(a)     the date of the proposed transfer;

(b)     the name of the scheme from which the transfer is proposed to be made;

(c)     the name of the scheme to which the transfer is proposed to be made;

(d)     the name of each member of the scheme whose fund value is proposed to be transferred (an ‘included member’);

(e)     the name of each member of the scheme (if any) who is not an included member;

(f)      in relation to each included member –

(i)      the amount to be transferred, and whether that amount represents the whole or part (and if so, what part) of that member’s fund value, and

(ii)      whether benefits have commenced from the scheme from which the transfer is to be made.

(3)     In paragraph (1), reference to the ‘fund’ is to the aggregate of the fund values of all the pension holders in the scheme from which the transfer is to be made.

131CI    Permitted transfers overseas – rule against legal avoidance

(1)     This Article applies where –

(a)     a permitted transfer of fund value has taken place pursuant to an election under Article 131CG(4);

(b)     after that transfer, the pension holder becomes resident in Jersey –

(i)      in the same year of assessment as that in which the transfer took place, or

(ii)      in any of the ensuing 3 years of assessment; and

(c)     after that transfer, but before the pension holder becomes resident in Jersey as described in sub-paragraph (b), a lump sum payment is made to the pension holder of the whole or part of the fund value transferred by that transfer.

(2)     Where this Article applies, the amount of the payment mentioned in paragraph (1)(c) shall be treated as the recipient’s income and chargeable to tax under Case III(d)(ii) of Schedule D.”.

“(1)    This Article applies to determine the basis of taxation of a person who –

(a)     has, pursuant to a 1(1)(k) housing consent, acquired land or property conferring a right to occupy land (such consent not having been revoked); or

(b)     has been granted Regulation 2(1)(e) status (such status not having been revoked or relinquished),

and such persons are referred to generically in this Article as ‘high value residents’.

(2)     Paragraph (3) applies where –

(a)     the consent mentioned in paragraph (1)(a) was granted following an application for such consent made on or after 22nd July 2011;

(b)     subject to paragraph (2A)(b), the Regulation 2(1)(e) status was granted before 1st January 2018 and was not a deemed grant under the Control of Housing and Work (Transitional and Consequential Provisions) (Jersey) Regulations 2013[11]; or

(c)     the consent mentioned in paragraph (1)(a) was granted following an application for such consent made before 22nd July 2011 and, before 1st January 2018 –

(i)      the high value resident applied to the Minister for paragraph (3), as it was then in force, to apply to him or her, and

(ii)      the Minister granted that application in accordance with paragraph (6) as it was then in force.

(2A)   Paragraph (3A) applies where –

(a)     the Regulation 2(1)(e) status is granted on or after 1st January 2018;

(b)     the Regulation 2(1)(e) status is granted before 1st January 2018, and the person to whom it is granted –

(i)      is not, at that date, but

(ii)      becomes, on or after 1st January 2019,

a person on whom tax is chargeable under this Law; or

(c)     in the case of any other person who is, before 1st January 2018, a high value resident –

(i)      the person makes an application to the Comptroller (in such form, if any, as the Comptroller may require) for paragraph (3A) to apply to him or her, and

(ii)      the Comptroller grants the application (subject to such conditions, if any, as the Comptroller may determine).

(2B)   Paragraph (3A)(b) only shall further apply in any case where –

(a)     a high value resident makes an application to the Comptroller (in such form, if any, as the Comptroller may require) for paragraph (3A)(b) to apply to him or her; and

(b)     the Comptroller grants the application (subject to such conditions, if any, as the Comptroller may determine).

(3)     Where this paragraph applies and, for a year of assessment, so much of the high value resident’s income as is chargeable to tax under Schedule D exceeds the prescribed limit for that year of assessment, the amount of that excess shall (notwithstanding the rate of tax required by Article 1 to be charged for that year of assessment) be charged to tax at the prescribed rate.

(3A)   Where this paragraph applies –

(a)     if, for a year of assessment, so much of the high value resident’s income as is chargeable to tax under Schedule D exceeds the prescribed limit for that year of assessment, the amount of that excess shall (notwithstanding the rate of tax required by Article 1 to be charged for that year of assessment) be charged to tax at the prescribed rate; but

(b)     if, for a year of assessment, a high value resident’s income chargeable to tax under Schedule D (the ‘actual income’) does not exceed the prescribed limit for that year of assessment –

(i)      the high value resident shall be deemed to have received such further amount of income chargeable to tax under Schedule D (the ‘deemed income’) as would (without deduction of any allowances, exemptions or reliefs due under this Law to that person) in addition to his or her actual income, be equal to that prescribed limit, and

(ii)      the aggregate amount of the actual income and the deemed income shall be charged to tax at the rate required by Article 1 to be charged for that year of assessment.

(4)     In calculating, for the purposes of paragraphs (3) and (3A)(a), the amount of a high value resident’s income chargeable to tax under Schedule D, there shall be disregarded any dividend declared out of profits or gains charged to tax at the standard rate on any body of persons.”.

“(9)    No application to the Comptroller under paragraph (2A)(c), or to the Minister under paragraph (6), shall be granted where –

(a)     the application is made after 31st October in the first year of assessment in respect of which the application is made; or

(b)     the Comptroller or, as the case may be, the Minister has previously granted such an application.

(10)    A paragraph of this Article applying to a person by virtue of a grant –

(a)     by the Comptroller, of an application made by a person under paragraph (2A)(c) or (2B); or

(b)     by the Minister, of an application made by a person under paragraph (6),

shall apply (subject to paragraph (11)) to the person for the year of assessment for which the application is made and for ensuing years.

(11)    If a person breaches any condition imposed by the Comptroller or (as the case may be) by the Minister in connection with the grant of such an application as mentioned in paragraph (10), the paragraph applying to that person by virtue of that grant shall cease to apply, in accordance with such transitional arrangements, if any, as the Comptroller or Minister may determine.

(12)    The States may by Regulations make provision prescribing limits and rates for the purposes of paragraphs (3), (3A) and (5) (and in this Article, a reference to a prescribed limit or rate is to a limit or rate so prescribed for the purposes of the paragraph in question), and such provision may in particular specify –

(a)     different limits in respect of different cases whereby paragraphs (3) and (3A) apply; and

(b)     different rates applying to different portions of so much of a person’s income as is chargeable to tax in accordance with a particular paragraph.

(12A) The Minister shall –

(a)     no later than 1st January 2023; and

(b)     thereafter, once in each subsequent period of 5 years beginning with that date,

consider whether the prescribed limits and rates continue to be appropriate in all the circumstances for the purposes of this Part.

(12B) Following the consideration described in paragraph (12A), the Minister may recommend to the States such revaluation of the prescribed limits as the Minister may consider appropriate, except that no increase may be recommended which exceeds the percentage increase, if any, in the RPI in the same period as that in respect of which the Minister’s recommendation is made (and for this purpose ‘RPI’ means the Retail Prices Index published by the Statistics Unit in the Chief Minister’s Department).”.

“1      Interpretation

In these Regulations, a reference to an Article by number is a reference to the Article of that number in the Income Tax (Jersey) Law 1961[13].

2        Prescribed limit

(1)     The limit prescribed for the purposes of Article 135A(3) is £625,000.

(2)     The limit prescribed for the purposes of Article 135A(3A)(a) is £725,000.

(3)     The limit prescribed for the purposes of Article 135A(3A)(b) where only that sub-paragraph applies to a high value resident by reason of a request by that high value resident granted under Article 135A(2B), is –

(a)     in relation to a high value resident to whom the grant of consent mentioned in Article 135A(1)(a) was made before 30th December 2010 (other than one to whom sub-paragraph (b) applies), £500,000;

(b)     in relation to a high value resident –

(i)      such as described in sub-paragraph (a), and

(ii)      to whom Article 135A(3) applies by reason of a request by that high value resident granted by the Minister as described in Article 135A(2)(c), £625,000;

(c)     in relation to a high value resident –

(i)      to whom the grant of consent mentioned in Article 135A(1)(a), or the grant of Regulation 1(1)(e) status, as the case may be, was made on or after 30th December 2010 and before 1st January 2018,

(ii)      other than such a high value resident as described in Article 135A(2A)(b) or (c),

£625,000.

(4)     The limit prescribed for the purposes of Article 135A(5) is £1 million.

3        Prescribed rate

(1)     The rate prescribed for the purposes of Articles 135A(3) and (3A)(a) is 1 pence in the pound.

(2)     The rate prescribed for the purposes of Article 135A(5) is –

(a)     on the first £500,000 of the income to be charged to tax in accordance with that paragraph, 10 pence in the pound;

(b)     on the remainder of that income, 1 pence in the pound.”.

“21    Finance (2018 Budget) (Jersey) Law 2018: relief from taxation for large corporate retailers and certain financial services companies

(1)     In this paragraph –

(a)     ‘0% company’ means either –

(i)      a large corporate retailer, or

(ii)      a company which is a financial services company because it falls within a description in the definition ‘financial services company’ that existed in that definition after, but not before, the date Article 5 of the Finance (2018) Budget (Jersey) Law 2018[14] has effect.’;

(b)     ‘relevant financial period’ means such part of the financial period of a 0% company occurring during all or any part of the period from 1st January 2016 to 31st December 2017 that is taken into account for the purpose of assessing the company’s liability to income tax for the year of assessment 2018.

(2)     If the condition in paragraph (3) is met in relation to a 0% company, the Comptroller shall grant such relief on the company’s income, profits and gains arising during the relevant financial period as the Comptroller considers to be fair, just and reasonable.

(3)     That condition is that the latest accounting date of a financial period of the 0% company (whether or not aggregated with another financial period) that is taken into account for the purpose of assessing the company’s liability to income tax for the year of assessment 2018 is 31st December 2018 (regardless of whether the accounting date is changed to that date for the purposes of this paragraph).

(4)     The Comptroller may determine the extent to which any person’s liability to tax is affected by relief given under paragraph (2) and make such adjustments to that person’s liability as the Comptroller considers to be fair, just and reasonable.”.

“(g)    an alternative investment fund; or

(h)     a person or arrangement prescribed by Regulations made by the States, or specified by direction, that meets the conditions set out in paragraph (3).”;

“(c)    to an alternative investment fund is a reference to a scheme or arrangement which is an AIF within the meaning given by Regulation 3 of the Alternative Investment Funds (Jersey) Regulations 2012[16].”.

“(f)    the supply of any medical service (within the extended meaning of that expression given by Article 20A of the Health Insurance (Jersey) Law 1967[18]) or goods by the contractor under a contract entered into under Article 20B of that Law.”.

“ ‘AIF services business’ has the meaning given by Article 1(1) of the Financial Services (Jersey) Law 1998[21];

‘alternative investment fund’ means a scheme or arrangement which is an AIF within the meaning given by Regulation 3 of the Alternative Investment Funds (Jersey) Regulations 2012[22];”;

“ ‘managed entity’ means a person who –

(a)     is registered to carry on fund services business under the Financial Services (Jersey) Law 1998 because the person falls within the classes of person specified in Article 2(10)(a) of that Law; and

(b)     is managed under a service contract by a person registered to carry on fund services business under that Law because the person falls within any of the classes specified in Article 2(10) of that Law;

‘managed manager’ means a person who –

(a)     holds a permit under the Collective Investment Funds (Jersey) Law 1988[23] as a functionary falling within Group 2 of Part 2 of the Schedule to that Law; and

(b)     is managed under a service contract by a functionary holding a permit under that Law.”.

“(ca)  in the case of an entity that holds a permit as manager under the Collective Investment Funds (Jersey) Law 1988, is not a collective investment fund, and holds the permit as a managed entity but is not also a permit holder as –

(i)      an administrator,

(ii)      a registrar, or

(iii)     a custodian,

one amount of £3,120, however many other permits the entity holds under that Law as a managed manager;”;

“(da)  in the case of an entity that is registered under the Financial Services (Jersey) Law 1998 in respect of AIF services business, one amount of £3,120;”;

“(fa)   in the case of an entity that is registered under the Financial Services (Jersey) Law 1998 to carry on fund services business as a manager in relation to one or more unclassified funds within the meaning of that Law, and is so registered as a managed entity but is not also registered as –

(i)      an administrator,

(ii)      a registrar, or

(iii)     a custodian,

one amount of £3,120, however many unclassified funds there are in relation to which the entity is so registered to carry on fund services business as a manager;”;

“(ba)  a reference to an administrator, a manager, a registrar or a custodian –

(i)      in sub-paragraph (ca), is to such a person as so called in, and for the purposes of, Part 2 of the Schedule to the Collective Investment Funds (Jersey) Law 1988, and

(ii)      in sub-paragraph (fa), is to such a person as so called in, and for the purposes of, Article 2(10) of the Financial Services (Jersey) Law 1998;”.

“(1A) If the designated officer is of the opinion that the main purpose, or one of the main purposes, of a transaction or combination or series of transactions giving rise to a chargeable document is the avoidance or reduction of a person’s liability to pay stamp duty, the designated person may determine the amount of stamp duty payable to counteract such avoidance or reduction of liability.

(1B)   No determination shall be made under paragraph (1A) if the person shows to the satisfaction of the designated officer that the purpose of avoiding or reducing liability to pay stamp duty was not the main purpose, or one of the main purposes, of the transaction or the combination or series of transactions.”.

“(3)    The exemptions from the foncier rate under paragraph (2)(f) and (g) do not apply in relation to –

(a)     houses and other buildings, with any premises appertaining thereto, owned by the States and regardless of the purpose for which they are used; and

(b)     land (other than land described in sub-paragraph (a)) owned by the States and used predominantly for the purpose of parking vehicles, regardless of any other purpose for which such land is used.”.

“(2A) The exemption from the occupier’s rate under paragraph (2)(c) does not apply in relation to –

(a)     houses and other buildings, with any premises appertaining thereto, occupied by the States; and

(b)     land (other than land described in sub-paragraph (a)) occupied by the States and used predominantly for the purpose of parking vehicles.”.