Jersey Law 10/1987

 

FINANCE (JERSEY) LAW, 1987.

____________

A LAW     to continue certain expiring fiscal Laws; to prescribe the standard rate of income tax for the year nineteen hundred and eighty-seven; to amend further the law relating to income tax to increase personal allowances and reliefs, and to make provision for retirement annuity contracts; to increase the rate of corporation tax; and to increase wines and spirits duty, beer duty and tobacco duty; sanctioned by Order of Her Majesty in Council of the

 

18th day of May, 1987.

____________

 

(Registered on the 3rd day of July, 1987.)

____________

 

STATES OF JERSEY.

____________

 

The 9th day of December, 1986.

____________

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 First 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, 1987.

PART II

Standard rate of income tax for 1987

ARTICLE 2

There shall be levied and charged in the Island for the year nineteen hundred and eighty-seven in accordance with the provisions of the Income Tax (Jersey) Law, 1961,1 as amended by any subsequent enactment,2 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 92 of the Income Tax (Jersey) Law, 1961,3 as amended,4 (hereafter in this Part referred to as “the principal Law”) –

(a)     in paragraph (1) for the words “two thousand one hundred pounds” there shall be substituted the words “two thousand three hundred pounds”;

(b)     in paragraph (2) for the words “five thousand seven hundred and fifty pounds” and “eight thousand six hundred and fifty pounds”, wherever they occur, there shall be substituted the words “six thousand four hundred pounds” and “nine thousand six hundred pounds” respectively.

(2)           In Article 92A of the principal Law5 –

(a)     in paragraph (1) for the words “four thousand pounds” and “five thousand eight hundred pounds” there shall be substituted the words “four thousand four hundred pounds” and “six thousand four hundred pounds” respectively;

(b)     in the first proviso to paragraph (1) for the words “four thousand pounds” there shall be substituted the words “four thousand four hundred pounds”, for the words “five thousand eight hundred pounds” there shall be substituted the words “six thousand four hundred pounds” and for the words “one thousand one hundred and twenty-five pounds”, in both places where they occur, there shall be substituted the words “one thousand two hundred pounds”;

(c)     in the second proviso to paragraph (1) for the words “four thousand pounds” and “five thousand eight hundred pounds” there shall be substituted the words “four thousand four hundred pounds” and “six thousand four hundred pounds” respectively.

(3)           In Article 94 of the principal Law6 –

(a)     in paragraph (1) for the words “two thousand two hundred pounds” and “one thousand one hundred pounds” there shall be substituted the words “two thousand four hundred pounds” and “one thousand two hundred pounds” respectively;

(b)     in paragraph (2) for the words “one thousand three hundred pounds” there shall be substituted the words “two thousand hundred pounds”.

(4)           In paragraphs (1) and (3) of Article 95 of the principal Law7 for the words “one thousand one hundred and twenty-five pounds” there shall be substituted the words “one thousand two hundred pounds”.

(5)           In paragraph (1) of Article 96 of the principal Law8 for the words “eight hundred and fifty pounds” there shall be substituted the words “nine hundred pounds”.

(6)           In paragraph (1) of Article 97 of the principal Law9 for the words “eight hundred and fifty pounds” there shall be substituted the words “nine hundred pounds”.

(7)           In Article 98 of the principal Law10 for the words “eight hundred and fifty pounds” there shall be substituted the words “nine hundred pounds”.

(8)           In paragraph (1) of Article 98A of the principal Law11 for the words “eight hundred and seventy-five pounds” there shall be substituted the words “one thousand pounds”.

(9)           In paragraph (1), in the proviso to paragraph (1), and in paragraph (3), of Article 99 of the principal Law12 for the words “eight hundred and fifty pounds”, wherever they occur, there shall be substituted the words “nine hundred pounds”.

(10)         In Article 100 of the principal Law13 for the words “eight hundred and fifty pounds” there shall be substituted the words “nine hundred pounds”.

ARTICLE 4

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

PART IV

Amendment of Income Tax Law in respect of retirement annuity contracts

ARTICLE 5

After Article 131A of the Income Tax (Jersey) Law, 1961,14 as amended, there shall be inserted the following Article –

“ARTICLE 131B

Annuity contracts

(1)          In this Article, unless the context otherwise requires –

(a)     ‘annuity contract’ means a retirement annuity contract approved by the Comptroller in accordance with the provisions of paragraph (3) of this Article;

(b)     ‘pensionable office or employment’ means an office or employment if, and only if, service in it is service which is taken into account for the purposes of providing for an individual, through a superannuation fund or pension scheme approved under the provisions of Article 131 of this Law,15 benefits payable on or after his retirement which are the maximum benefits which may be provided under the provisions of that Article;

(c)     ‘relevant earnings’ in relation to any individual means any income of his assessed to tax, being –

(i)      income arising in respect of emoluments from an office or employment held by him other than a pensionable office or employment, or

(ii)     income which is charged under Schedule D and is immediately derived by him from the carrying on or exercise by him of his trade, profession or vocation, either as an individual or, in the case of a partnership, as a partner personally acting therein.

(2)          Any premium paid by an individual under an annuity contract shall be deducted from his relevant earnings assessed to tax for the year of assessment in which the premium is paid.

(3)          The Comptroller may approve a contract if it is shown to his satisfaction that the following conditions are satisfied –

(a)     the contract is made by an individual who is in receipt of relevant earnings subject to income tax under the provisions of this Law with a company resident in the Island, or carrying on business through a branch or agency in the Island, and carrying on in the Island the business of granting annuities on human life;

(b)     subject to the provisions of paragraph (4) of this Article, the contract does not provide –

(i)      for the payment by the company during the life of the individual of any sum except sums payable by way of annuity to the individual; or

(ii)     for the annuity payable to the individual to commence before he attains the age of sixty years or after he attains the age of seventy years; or

(iii)    for the payment by the company of any other sums except sums payable by way of annuity to the surviving spouse of the individual and any sums which, in the event of no annuity becoming payable either to the individual or his surviving spouse, are payable by way of return of premiums, by way of reasonable interest on premiums or by way of bonuses out of profits; or

(iv)    for the annuity, if any, payable to the surviving spouse of the individual to be of a greater annual amount than that paid or payable to the individual; or

(v)     for the payment of any annuity otherwise than for the life of the individual or his surviving spouse; or

(vi)    for the payment of any premium which, together with any other premium payable under a contract of a similar nature with the same or another company, shall exceed the following limits –

 

Age next birthday at date of commencement of contract.	Limit of total annual contributions to annuity contract.
Not exceeding 25	£750
Exceeding 25 but not exceeding 35	£1,500
Exceeding 35 but not exceeding 45	£2,250
Exceeding 45	£3,000;

(c)     the contract includes provision securing that no annuity payable under it shall be capable in whole or in part of surrender, commutation or assignment:

Provided that the contract may give the individual the right to receive, by way of commutation of part of the annuity payable to him, a lump sum not exceeding three times the annual amount of the remaining part of the pension and shall make any such right depend on the exercise by the individual of an election at or about the time when the annuity first becomes payable to him.

(4)          The Comptroller may, if he thinks fit, and subject to any conditions he thinks proper to impose, approve a contract which otherwise satisfies the conditions contained in paragraph (3) of this Article notwithstanding that the contract provides for one or more of the following matters –

(a)     for the payment of a lump sum on the death of an individual who died prior to the date on which the annuity would have become payable;

(b)     for the payment after the individual’s death of an annuity to a dependent, being a person who is dependent upon the individual for the ordinary necessities of life;

(c)     for the annuity payable to any person to continue for a term certain, not exceeding ten years, notwithstanding his death within that term;

(d)     for the payment to the individual of an annuity commencing before the age of sixty years, if the annuity is payable on his becoming incapable through infirmity of body or mind of carrying on his own occupation or any occupation of a similar nature for which he is trained or fitted;

(e)     if the individual’s ccupation is one in which persons customarily retire before attaining the age of sixty years, for the annuity to commence before he attains that age but not before he attains the age of fifty years;

(f)      in the case of an annuity which is to continue for a term certain, for the annuity to be assignable by will, and in the event of any person dying entitled to it, for it to be assignable by his personal representatives in the distribution of the estate;

(g)     for the individual or his surviving spouse or dependent having accrued rights under a contract (in this sub-paragraph referred to as ‘the annuitant’) to require a sum representing those accrued rights under the contract to be paid by the company with which the contract is made to such other company, being a company which falls within the provisions of sub-paragraph (a) of paragraph (3) of this Article, as he may specify, where the sum is to be applied as the premium or other consideration for a second annuity contract made between the annuitant and that other company where such second annuity contract is approved by the Comptroller under the provisions of this Article.

(5)          Any person who is aggrieved by a condition imposed by the Comptroller on, or by the refusal by the Comptroller of his approval of, a contract under this Article shall be entitled to appeal to the Commissioners on giving the Comptroller notice in writing, stating the grounds of appeal, within twenty-one days of the date of the Comptroller’s decision.

(6)          The provisions of Part VI of this Law16 shall apply in the case of an appeal under paragraph (5) of this Article as they apply in the case of an appeal from an assessment made by the Comptroller, with such adaptations as may be necessary.

(7)          For the purposes of this Article a married woman’s relevant earnings shall not be treated as her husband’s relevant earnings, notwithstanding that her income chargeable to tax is treated as his income.

(8)          Any annuity payable under an annuity contract to an individual who has contributed under such contract or to his surviving spouse or dependent shall, for all the purposes of this Law, be treated as earned income arising in the Island.

(9)          Notwithstanding paragraph (2) of this Article, no deduction shall be made in respect of any premiums to the extent that, in aggregate, they exceed an amount equal to fifteen per cent of the relevant earnings of the individual, as reduced by losses or capital allowances applicable to the relevant earnings:

Provided that if an individual has contributed to a superannuation fund or pension scheme approved under Article 131 of this Law17 during the year of assessment, and the aggregate of his contributions to that fund or scheme and the aforesaid premium exceed fifteen per cent of his relevant earnings, reduced as aforesaid, the deduction shall be reduced by the amount of that excess.

(10)        The Finance and Economics Committee may make orders generally for the purpose of carrying into effect the provisions of this Article.”

ARTICLE 6

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

PART V

Amendment of Corporation Tax Law

ARTICLE 7

In Article 3 of the Corporation Tax (Jersey) Law, 1956, as amended,18 and in the proviso to that Article, for the words “three hundred pounds” there shall be substituted the words “five hundred pounds”.

ARTICLE 8

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

PART VI

Amendment of Wines and Spirits Duty Law

ARTICLE 9

For the First and Second Schedules to the Wines and Spirits (Revenue Duties) (Jersey) Law, 1973,19 as amended,20 there shall be substituted the Schedules so numbered set out in the Second Schedule to this Law.

ARTICLE 10

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the 25th day of November, 1986.

Part VII

Amendment of Beer Duty Law

ARTICLE 11

In the first paragraph of Article 1 of the “Loi (1937) sur la perception d’un impôt sur la bière”21 as amended,22 for the expression “£10.50” there shall be substituted the expression “£11.50”.

ARTICLE 12

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the 25th day of November, 1986.

Part VIII

Amendment of Tobacco Duty Law

ARTICLE 13

In Article 1 of the “Loi (1937) sur la perception d’un impôt sur le tabac”,23 as amended24 –

(a)     in the first paragraph, in sub-paragraphs (a), (b) and (c) for the expressions “£7.85”, “£8.15” and “£8.45” there shall be substituted the expressions “£8.60”, “£9.00” and “£9.30” respectively;

(b)     in the second paragraph, for the expression “£7.20” there shall be substituted the expression “£7.90”.

ARTICLE 14

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the 25th day of November, 1986.

Part IX

Short title

ARTICLE 15

This Law may be cited as the Finance (Jersey) Law, 1987.

SCHEDULES

FIRST SCHEDULE

(Article 1)

Fiscal Laws continued in force

Import Duties (Jersey) Law, 1932.25

“Loi (1937) sur la perception d’un impôt sur le tabac”.26

“Loi (1937) sur la perception d’un impôt sur la bière”.27

“Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”.28

Revenue Duty on Oils and Spirits (Administration) (Jersey) Law, 1940.29

SECOND SCHEDULE

(Article 9)

Amendment of Wines and Spirits Duty Law

“FIRST SCHEDULE

(Article 3)

Impôt on spirits

 

£7.00 per litre of alcohol in the spirits.”

“SECOND SCHEDULE

(Article 4)

Impôt on wines

 

Strength of wines	Rate per hectolitre
Cider or perry not exceeding 8.6 per cent volume	£12.00
Wines not exceeding 15 per cent volume	£46.50
Wines exceeding 15 per cent volume but not exceeding 22 per cent volume	£57.00
	per litre of alcohol in the wine
Wines exceeding 22 per cent volume	£7.00

For the purposes of this Schedule –

(a)     the expression ‘per cent volume’ means the percentage of alcohol in the wine determined in accordance with the provisions of Article 2 of this Law;30 and

(b)     the expression ‘per litre of alcohol in the wine’ means the quantity of alcohol in the wine as determined in accordance with the provisions of Article 2 of this Law.³⁰”