Jersey Law 21/1995

 

FINANCE (No. 4) (JERSEY) LAW 1995

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A LAW     to continue certain expiring fiscal laws; to prescribe the standard rate of income tax for the year nineteen hundred and ninety-five; to amend further the law relating to income tax to increase certain personal allowances and reliefs and in respect of deductions on account of Social Security contributions, and to make new provision with regard to the taxation of certain partnerships, and to modify provisions relating to payments made under covenants and donations to charity and in respect of tax credits and annuity contracts and purchased life annuities; and to increase the fee for registration under the Banking Business (Jersey) Law 1991, as amended; and to increase tobacco duty and oils and spirits duty, sanctioned by Order of Her Majesty in Council of the

 

17th day of May 1995

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(Registered on the 4th day of August 1995)

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STATES OF JERSEY

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The 17th day of January 1995

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

PART I

Continuation of certain expiring fiscal Laws

ARTICLE 1

The Laws mentioned in the Schedule to this Law, as amended and as continued in force by any subsequent enactment, shall remain in force until the thirty-first day of December 1995.

PART II

Standard rate of income tax for 1995

ARTICLE 2

There shall be levied and charged in the Island for the year nineteen hundred and ninety-five in accordance with the provisions of the Income Tax (Jersey) Law 1961,1 as amended2 by any subsequent enactment, including this Law, income tax at the standard rate of twenty pence in the pound.

PART III

Increase of personal allowances and reliefs under Income Tax Law

ARTICLE 3

(1)           In Article 92A of the Income Tax (Jersey) Law 1961,3 as amended4 (hereafter in this Part referred to as “the principal Law”) –

(a)     in paragraph (1) for the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” there shall be substituted the words “nine thousand six hundred pounds” and “fifteen thousand six hundred and thirty pounds” respectively;

(b)     in the first proviso to paragraph (1) for the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” there shall be substituted the words “nine thousand six hundred pounds” and “fifteen thousand six hundred and thirty pounds” respectively, and for the words “two thousand pounds”, in both places, there shall be substituted the words “two thousand pounds or three thousand pounds, as the case may be”;

(c)     in the second proviso to paragraph (1) for the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” there shall be substituted the words “nine thousand six hundred pounds” and “fifteen thousand six hundred and thirty pounds” respectively;

(d)     in the third proviso to paragraph (1) for the words “nine thousand three hundred and seventy-five pounds” and “fifteen thousand two hundred and fifty pounds” there shall be substituted the words “nine thousand six hundred pounds” and “fifteen thousand six hundred and thirty pounds” respectively;

(e)     in the fourth proviso to paragraph (1) for the words “nine thousand three hundred and seventy-five pounds”, “one thousand one hundred and twenty-five pounds”, “fifteen thousand two hundred and fifty pounds” and “two thousand two hundred and fifty pounds” there shall be substituted the words “nine thousand six hundred pounds”, “one thousand one hundred and fifty pounds”, “fifteen thousand six hundred and thirty pounds” and “two thousand three hundred pounds” respectively.

(2)           In Article 95 of the principal Law5 –

(a)     for paragraph (1) there shall be substituted the following paragraph –

“(1)                If an individual proves –

(a)     that he has living at any time within the year of assessment any child who is either under the age of sixteen years or who, if over the age of sixteen years at the commencement of that year was receiving full-time instruction at any school, he shall, subject to the provisions of this Article, be entitled in respect of each child to a deduction of two thousand pounds; or

(b)     that he has living at any time within the year of assessment any child who is over the age of sixteen years and was receiving full-time instruction at any university, college or other establishment for further education he shall, subject to the provisions of this Article, be entitled in respect of each child to a deduction of three thousand pounds.

In this paragraph, ‘child’ includes a step-child and an illegitimate child whose parents have married each other after his birth.”;

(b)     in paragraph (3) for the words “by the amount of the excess” there shall be substituted “, in the case of a deduction referred to in sub-paragraph (a) of paragraph (1) of this Article, by the amount of the excess and, in the case of a deduction referred to in sub-paragraph (b) of paragraph (1) of this Article, by three pounds for every two pounds of the excess”.

(3)           In paragraph (1) of Article 98A of the principal Law6 for the words “three thousand seven hundred pounds” there shall be substituted the words “three thousand eight hundred pounds”.

ARTICLE 4

This Part of this Law shall have effect for the year nineteen hundred and ninety-four and ensuing years.

PART IV

Amendment of Income Tax Law in respect of deductions on account of Social Security contributions

ARTICLE 5

In paragraph (1) of Article 70A of the Income Tax (Jersey) Law 1961,7 as amended, for the words “eleven-nineteenths” there shall be substituted the words “fifty-seven per cent”.

ARTICLE 6

This Part of this Law shall have effect for the year nineteen hundred and ninety-four and ensuing years.

PART V

Amendment of Income Tax Law in respect of the taxation of partnerships

ARTICLE 7

After Article 76 of the Income Tax (Jersey) Law 1961,8 as amended, there shall be inserted the following Article –

“ARTICLE 76A

Limited partnerships

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

(2)          Paragraph (1) of this Article shall not apply to the profits or gains derived from international activities of a partner in a limited partnership who is not resident in the Island.

(3)          Articles 74 and 76 of this Law shall not apply to a partner in a limited partnership.

(4)          Articles 86 and 87 of this Law shall not apply in a case where the general partner of a limited partnership responsible for making the annual payment referred to in those Articles is not resident in the Island or is a company which, pursuant to Article 123B of this Law, has made application and been charged to tax as an international business company.

(5)          Where a partner in a limited partnership is resident in the Island, or is non-resident in the Island and entitled to profits or gains not excluded from charge by paragraph (2) of this Article, the general partner or, if there is more than one general partner, the general partner who is first named in the partnership agreement shall, when required to do so by any general notice or by notice served on him by the Comptroller, prepare and deliver a statement of those profits or gains arising to the said partners from the activities of the limited partnership.

(6)          In this Article –

‘general partner’ means a person who is so named in, or is identifiable through, the partnership agreement and if more than one shall mean each general partner;

‘international activities’ has the same meaning as in Article 123B of this Law;

‘limited partner’ means a person who is so named in, or is identifiable through, the partnership agreement and if more than one shall mean each limited partner;

‘limited partnership’ means a partnership consisting of one or more persons who are general partners and one or more persons who are limited partners;

‘partner’ means a limited partner or a general partner;

‘partnership agreement’ means any agreement in writing of the partners as to the affairs of a limited partnership and the rights and obligations of the partners among themselves;

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

ARTICLE 8

This Part of this Law shall have effect for the year nineteen hundred and ninety-five and ensuing years.

PART VI

Amendment of Income Tax Law in respect of payments made under covenant

ARTICLE 9

For paragraphs (2) and (3) of Article 87A of the Income Tax (Jersey) Law 1961,9 as amended, there shall be substituted the following paragraphs –

“(2)        Notwithstanding paragraph (1) of this Article, a payment made to any person, with the exception of a payment to a charity, shall be treated for all the purposes of this Law as the payer’s income and that income shall be computed without any deduction being made on account of the payment and the payment shall not form part of the income of the person to whom it is made or of any other person.

(3)          For the purposes of this Article, ‘charity’ means a body of persons, or trust, the income from the property of which is exempt from income tax by virtue of sub-paragraph (a), (aa), (ab) or (c) of Article 115 of this Law.”.

ARTICLE 10

This Part of this Law shall be deemed to have effect in relation to any deed of covenant executed on or after the sixth day of December 1994.

PART VII

Amendment of Income Tax Law in respect of donations to charity

ARTICLE 11

In sub-paragraph (f) of paragraph (1) of Article 87B of the Income Tax (Jersey) Law 1961,10 as amended, for the words “five hundred pounds” there shall be substituted the words “two hundred and fifty pounds”.

ARTICLE 12

This Part of this Law shall have effect for the year nineteen hundred and ninety-five and ensuing years.

PART VIII

Amendment of Income Tax Law in respect of tax credits

ARTICLE 13

In paragraph (5) of Article 112 of the Income Tax (Jersey) Law 1961,11 as amended, for the words “payable by him under the provisions of Article 104 of this Law” there shall be substituted the words “which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which he is liable to make to any other person”.

ARTICLE 14

This Part of this Law shall have effect for the year nineteen hundred and ninety-four and ensuing years.

PART IX

Amendment of Income Tax Law in respect of annuity contracts

ARTICLE 15

In Article 131B of the Income Tax (Jersey) Law 1961,12 as amended –

(a)     in paragraph (1) after the definition of “annuity contract” there shall be inserted the following definition –

“(aa) ‘authorised insurance company’ means a person authorised under Article 3 of the Insurance Business (Jersey) Law 198313 or registered, or exempted from registration, under section 11 or section 8 respectively of the Insurance Business (Guernsey) Law 1986 carrying on business through a branch or agency in the Island or in Guernsey;”;

(b)     in paragraph (3) –

(i)      in sub-paragraph (a) for all the words after “with a company” to the end of the sub-paragraph there shall be substituted the words “to which this Article applies”,

(ii)     in clause (vi) of sub-paragraph (b) for the words “nine thousand pounds” there shall be substituted the words “twelve thousand pounds”;

(c)     in sub-paragraph (g) of paragraph (4) for the words “which falls within the provisions of sub-paragraph (a) of paragraph (3) of this Article”, there shall be substituted the words “to which this Article applies”;

(d)     after paragraph (7) there shall be inserted the following paragraph –

“(7A)   Any annuity must be payable by an authorised insurance company carrying on in the Island or in Guernsey the business of granting annuities on human life.”;

(e)     after paragraph (9) there shall be inserted the following paragraph –

“(9A)   This Article applies to a company carrying on in the Island or in Guernsey the business of granting annuities on human life being –

(a)     a company resident in the Island;

(b)     an authorised insurance company; or

(c)     a person or institution specified in subsection (1) of section 632 of the Income and Corporation Taxes Act 1988 (of the United Kingdom) carrying on business through a branch or agency in the Island or in Guernsey.”.

ARTICLE 16

This Part of this Law shall have effect for the year nineteen hundred and ninety-five and ensuing years.

PART X

Amendment of Income Tax Law in respect of purchased life annuities

ARTICLE 17

After sub-paragraph (b) of paragraph (7) of Article 132 of the Income Tax (Jersey) Law 1961,14 as amended, there shall be inserted the following sub-paragraph –

“(ba) to any annuity where the whole or part of the consideration for the grant of the annuity consisted of sums satisfying the conditions for relief from tax under Article 131B of this Law (which gives relief for certain annuity contract premiums); or”.

ARTICLE 18

This Part of this Law shall have effect for the year nineteen hundred and ninety-four and ensuing years.

PART XI

Increase of fee under the Banking Business (Jersey) Law 1991

ARTICLE 19

In paragraph (1) of Article 8 of the Banking Business (Jersey) Law 1991,15 as amended, for the words “seven thousand five hundred pounds” there shall be substituted the words “nine thousand pounds”.

ARTICLE 20

This Part of this Law shall have effect with respect to applications for registration made after the thirty-first day of January 1995.

PART XII

Amendment of Tobacco Duty Law

ARTICLE 21

In Article 1 of the “Loi (1937) sur la perception d’un impôt sur le tabac”, as amended16 –

(a)     in sub-paragraphs (a), (b) and (c) of the first paragraph for the expressions “£28.70”, “£30.04”, “£31.05”, “£38.82” and “£32.99” there shall be substituted the expressions “£31.14”, “£32.59”, “£33.69”, “£42.12” and “£35.79” respectively;

(b)     in the second paragraph for the expression “£28.70” there shall be substituted the expression “£31.14”.

ARTICLE 22

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the sixth day of December 1994.

PART XIII

Amendment of Oils and Spirits Duty Law

ARTICLE 23

In Article 2 of the “Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”, as amended,17 for the expressions “£6.21”, “£9.95” and “£7.14” there shall be substituted the expressions “£7.21”, “£10.20” and “£7.32” respectively.

ARTICLE 24

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the sixth day of December 1994.

PART XIV

Short title

ARTICLE 25

This Law may be cited as the Finance (No. 4) (Jersey) Law 1995.

 

G.H.C. COPPOCK

 

Greffier of the States.

SCHEDULE

(Article 1)

Fiscal Laws continued in force

Import Duties (Jersey) Law 1932.18

“Loi (1937) sur la perception d’un impôt sur le tabac”.19

“Loi (1937) sur la perception d’un impôt sur la bière”.20

“Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”21

Revenue Duty on Oils and Spirits (Administration) (Jersey) Law 1940.22