Arrangement

THE STATES, in pursuance of Article 6 of the Taxation (Land Transactions) (Jersey) Law 2009[1] and Article 3 of the Stamp Duties and Fees (Jersey) Law 1998[2], have made the following Regulations –

“1      Interpretation of Schedule

In this Schedule –

‘amount secured’ means the amount advanced by a secured party, such amount being secured by a transaction to which Article 3(1)(c) applies;

‘gross value’, in relation to land, means its market value.”.

“3A   Further amounts secured by a transaction to which Article 3(1)(c) applies

(1)     This paragraph applies where there is a transaction to which Article 3(1)(c) applies and the conditions specified in sub-paragraph (2) are met.

(2)     Those conditions are that –

(a)     some or all of the amount secured by that transaction remains unpaid at the time a new amount is secured (the first amount being referred to as the ‘original amount’ and the second amount as the ‘new amount’);

(b)     the original and new amount apply to a dwelling that is owned by a company and occupied by a person (the ‘occupier’) as his or her sole place of residence in Jersey, such person being entitled to occupy that dwelling by virtue of owning shares in that company;

(c)     the new amount and the original amount relate to the same dwelling;

(d)     the occupier referred to in clause (b) is –

(i)      the borrower of the original amount and the new amount; and

(ii)      a person to whom any of Regulations 1(1)(a) to (j) and (n)(ii) and (iii) of the Housing (General Provisions) (Jersey) Regulations 1970[4] apply;

(e)     the effect of borrowing the new amount is to extinguish the borrower’s debt in respect of the original amount;

(f)      LTT in respect of the original amount has been paid under paragraph 3.

(3)     LTT shall be charged on the value of the transaction described in sub-paragraph (1) in respect of the new amount at the rate of –

(a)     where the new amount is less than or equal to the unpaid amount, £50;

(b)     where the new amount is greater than the unpaid amount –

(i)      for the portion of the amount that is equal to the unpaid amount, £50, and

(ii)      for the portion of the amount that is greater than the unpaid amount, 50p for each £100 or part of £100, subject to a minimum of £5.”.

“(3)    The rate of LTT applicable to a transaction to which this paragraph applies is £50, plus –

(a)     where the value of the transaction does not exceed £300,000, nil;

(b)     where the value of the transaction exceeds £300,000 but does not exceed £400,000, nil in respect of the first £300,000, plus £1 for each £100 or part of £100 in excess thereof.”.

“5      First time buyers: security interests

(1)     This paragraph applies to a transaction described in Article 3(1)(c) which relates to a transaction described in Article 3(1)(a) which is charged with LTT under paragraph 4, where both transactions relate to the same shares and take place on the same day.

(2)     The rate of LTT applicable to a transaction to which this paragraph applies is £50 plus –

(a)     where the amount secured by the security agreement does not exceed £300,000, nil;

(b)     where the amount secured by the security agreement exceeds £300,000 but does not exceed £400,000, nil in respect of the first £300,000 plus 25p for each £100 or part of £100 in excess thereof, subject to a minimum of £25.”.