Arrangement

Part 1

Part 2

Part 3

A LAW to amend further the Income Tax (Jersey) Law 1961.

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

“(8)    This Article is subject to Article 90D.”.

“(5)    This Article is subject to Article 90D.”.

“(9)    This Article is subject to Article 90D.”.

“90D Reduction in relief of tax under Articles 90AA, 90B and 90C for 2007 to 2010

The amount of any relief that a person is allowed to deduct, by virtue of any of Articles 90AA, 90B and 90C, in calculating the person’s total income shall be reduced –

(a)     for the year of assessment 2007, by 20%;

(b)     for the year of assessment 2008, by 40%;

(c)     for the year of assessment 2009, by 60%;

(d)     for the year of assessment 2010, by 80%.”.

“92A Threshold for exemption from income tax

(1)     An individual shall be entitled to exemption from income tax for a year of assessment if the individual’s total income for that year does not exceed the threshold applicable in the individual’s case by virtue of this Article.

(2)     The threshold applicable in the case of an individual who proves, for the year of assessment –

(a)     that he has his wife living with him; or

(b)     that his wife is wholly maintained by him during the year of assessment and that he is not entitled, in computing the amount of his income for that year for the purposes of this Law, to make any deductions in respect of sums paid for the maintenance of his wife,

shall be, subject to paragraphs (3), (4), (5), (8) and (9) and Article 92B –

(i)      for the year of assessment 2007, £18,130;

(ii)      for the year of assessment 2008, £18,580;

(iii)     for the year of assessment 2009 and ensuing years, £19,040.

(3)     Where an individual to whom paragraph (2) applies proves, at the commencement of the year of assessment, that either he or his wife living with him was of the age of 63 years or more, the threshold applicable in the individual’s case shall be increased –

(a)     for the year of assessment 2007, by £2,630;

(b)     for the year of assessment 2008, by £2,700;

(c)     for the year of assessment 2009 and ensuing years, by £2,770.

(4)     Where the total income for the year of assessment of an individual to whom paragraph (2) applies includes any earned income of his wife, the threshold applicable in his case shall be increased by an amount equal to the amount of that earned income, but not exceeding in any case £4,500.

(5)     No exemption shall be allowed by virtue of paragraph (4) in respect of earned income received or receivable by the wife from the individual himself.

(6)     The threshold applicable in the case of any individual to whom, for the year of assessment, paragraph (2) does not apply shall be, subject to paragraphs (7), (8) and (9) and Article 92B –

(a)     for the year of assessment 2007, £11,300;

(b)     for the year of assessment 2008, £11,580;

(c)     for the year of assessment 2009 and ensuing years, £11,870.

(7)     Where an individual to whom paragraph (6) applies proves that, at the commencement of the year of assessment, he or she was of the age of 63 years or more the threshold applicable in the individual’s case shall be increased –

(a)     for the year of assessment 2007, by £1,310;

(b)     for the year of assessment 2008, by £1,350;

(c)     for the year of assessment 2009 and ensuing years, by £1,380.

(8)     Where any individual is entitled, for the year of assessment, to any deduction under Article 95, the threshold applicable in the individual’s case shall be increased by an amount equal to the aggregate of the deductions to which the individual is entitled under that Article.

(9)     Where any individual is entitled, for the year of assessment, to a deduction under Article 98A, the threshold applicable in the individual’s case shall be increased be an amount equal to the deduction to which the individual is entitled under that Article.

(10)    In calculating an individual’s total income for the purposes of paragraph (1), the effect of Article 90D shall be disregarded.

92B   Increase in exemption threshold for child day care

(1)     The threshold applicable in the case of an eligible claimant shall be increased by –

(a)     the amount paid by the claimant to a registered day carer for the care of a qualifying child;

(b)     the claimant’s qualifying income; or

(c)     £6,150,

whichever is the lowest, but no amount which qualifies for relief under any other provision of this Law shall be included.

(2)     Where, for any year of assessment, 2 or more individuals are entitled to an increase under paragraph (1) in respect of the qualifying child, the amount of the increase shall be apportioned between them as they agree or, in default of agreement, by the Comptroller to the best of his or her judgment, in accordance with evidence supplied to the Comptroller by each claimant.

(3)     No increase claimed under paragraph (1) shall be allowed unless the eligible claimant provides the Comptroller with a certificate from the registered day carer showing, in respect of the year of assessment –

(a)     the name, address and registration number of the registered day carer;

(b)     the full name and date of birth of the qualifying child; and

(c)     the amount received for the care of that child.

(4)     For the purposes of Article 137, a certificate provided under paragraph (3) shall be treated as a statement made in connection with a claim for relief.

(5)     In this Article –

‘eligible claimant’ means –

(a)     an individual in whose case the exemption threshold described in Article 92A(2) applies and –

(i)      whose spouse has qualifying income, or

(ii)      who is entitled to an additional allowance under Article 98A; or

(b)     an individual in whose case the exemption threshold described in Article 92A(6) applies and who has qualifying income, apart from a man, if he and a woman live together as husband and wife for the whole or any part of the year of assessment;

‘qualifying child’ means a child in respect of whom an eligible claimant is entitled to a deduction under Article 95 and who has not attained the age of 13 years in the year of assessment;

‘qualifying income’ means income, other than any earned income received or receivable by a wife from her husband, arising from a trade, profession, office, employment or vocation chargeable to tax under Case I or II of Schedule D, other than the first £4,500 of that income for the year of assessment;

‘registered day carer” means a day carer registered under the Day Care of Children (Jersey) Law 2002[2] or a person taken to have been so registered by virtue of Article 13 of that Law.”.

“92C Marginal rate of tax

(1)     An individual whose total income exceeds the threshold applicable in the individual’s case by virtue of Article 92A shall be entitled, for any year of assessment, to have the amount of income tax payable in respect of his or her total income reduced so that it does not exceed an amount equal to 27% of the amount by which the individual’s total income exceeds that threshold.

(2)     In calculating an individual’s total income for the purposes of paragraph (1), the effect of Article 90D shall be disregarded.”.

“94    Personal allowance

(1)     If an individual proves that for the year of assessment he has his wife living with him, or that his wife is wholly maintained by him during the year of assessment and that he is not entitled in computing the amount of his income for that year for the purposes of this Law to make any deductions in respect of the sums paid for the maintenance of his wife, he shall be entitled to a deduction by way of personal allowance for married persons of £5,200.

(2)     An individual who is not entitled to a deduction under paragraph (1) shall be entitled to a deduction by way of personal allowance of £2,600.

(3)     If the total income of the individual includes any earned income of his wife, the deduction to be allowed under this Article shall be increased by an amount equal to the amount of that earned income, but not exceeding in any case £4,500.

(4)     No deduction shall be allowed by virtue of paragraph (3) in respect of earned income received or receivable by the wife from the individual himself.

(5)     This Article is subject to Article 101B.”.

“(1A) Paragraph (1) shall apply only where the insurance was made, the contract was entered into, or the liability arose, before 1st January 2007.”;

“(5)    Where, apart from this paragraph, the amount of any deduction by way of allowance to which an individual would be entitled under this Article exceeds £1,000, the amount of the deduction shall instead be whichever is the greater of –

(a)     £1,000;

(b)     the amount to which, apart from this paragraph, the individual would be entitled under this Article, reduced –

(i)      for the year of assessment 2007, by 20%,

(ii)      for the year of assessment 2008, by 40%,

(iii)     for the year of assessment 2009, by 60%.

(iv)     for the year of assessment 2010, by 80%.”.

“101B    Reduction in allowances under Articles 92, 94 and 101A for 2007 to 2010

The amount of any deduction by way of allowance to which an individual is entitled under any of Articles 92, 94 and 101A shall be reduced –

(a)     for the year of assessment 2007, by 20%;

(b)     for the year of assessment 2008, by 40%;

(c)     for the year of assessment 2009, by 60%;

(d)     for the year of assessment 2010, by 80%.”.

“(3A) In a case to which sub-paragraph (3) applies, Article 96 shall continue to have effect –

(a)     for the year of assessment 2007, with the substitution in paragraph (1) of that Article of the amount ‘one thousand five hundred pounds’ by the amount ‘£1,200’;

(b)     for the year of assessment 2008, with the substitution in paragraph (1) of that Article of the amount ‘£1,200’ by the amount ‘£900’;

(c)     for the year of assessment 2009, with the substitution in paragraph (1) of that Article of the amount ‘£900’ by the amount ‘£600’;

(d)     for the year of assessment 2010, with the substitution in paragraph (1) of that Article of the amount ‘£600’ by the amount ‘£300’.

(3B)   In a case to which sub-paragraph (3) applies, Article 96 shall continue to have effect with the deletion of the word ‘higher’ in sub-paragraph (b) of the proviso.”;

“(4A) In a case to which sub-paragraph (4) applies, Article 99 shall continue to have effect –

(a)     for the year of assessment 2007, with the substitution in paragraph (1) of that Article of the amount ‘one thousand five hundred pounds’ by the amount ‘£1,200’;

(b)     for the year of assessment 2008, with the substitution in paragraph (1) of that Article of the amount ‘£1,200’ by the amount ‘£900’;

(c)     for the year of assessment 2009, with the substitution in paragraph (1) of that Article of the amount ‘£900’ by the amount ‘£600’;

(d)     for the year of assessment 2010, with the substitution in paragraph (1) of that Article of the amount ‘£600’ by the amount ‘£300’.”;

“(5A) In a case to which sub-paragraph (5) applies, Article 100 shall continue to have effect –

(a)     for the year of assessment 2007, with the substitution in paragraph (1) of that Article of the amount ‘one thousand five hundred pounds’ by the amount ‘£1,200’;

(b)     for the year of assessment 2008, with the substitution in paragraph (1) of that Article of the amount ‘£1,200’ by the amount ‘£900’;

(c)     for the year of assessment 2009, with the substitution in paragraph (1) of that Article of the amount ‘£900’ by the amount ‘£600’;

(d)     for the year of assessment 2010, with the substitution in paragraph (1) of that Article of the amount ‘£600’ by the amount ‘£300’.”.

“‘marginal income deduction’ means a reduction of total income allowed only for the purposes of and in accordance with Articles 92A and 92C;”.

“(3A) Where only a portion of a loan fulfils the conditions required under Article 90AA for interest on the loan to be eligible for a marginal income deduction, such portion of the total interest payable on the whole of the loan shall be treated as eligible for a marginal income deduction under that Article as equates to the portion of the loan fulfilling those conditions.”;

“(3)    An individual making a payment to which this Article applies shall be entitled, for the year of assessment in which the payment falls due, to a marginal income deduction of an amount determined in accordance with paragraph (4).”;

“(10)  In calculating an individual’s total income for the purposes of paragraph (1), that total shall be reduced by any marginal income deduction to which the individual is entitled under Article 90AA, 90B or 90C.”.

“(2)    In calculating an individual’s total income for the purposes of paragraph (1), that total shall be reduced by any marginal income deduction to which the individual is entitled under Article 90AA, 90B or 90C.”.

“(5)    The amount of any deduction by way of allowance to which an individual is entitled under this Article shall not exceed £1,000.”.

“103  No exemption or relief unless statement delivered

An individual shall not be entitled to any exemption or the application of the marginal rate, or to any allowances or relief under the preceding provisions of this Part, unless the individual has delivered to the Comptroller a statement of the individual’s income from all sources.”.

“(4)    Subject to paragraph (5), any allowances, exemptions or reliefs (notwithstanding Articles 92B(2), 95(4) and 98A(4)) shall be apportioned between the husband and wife in proportion to the amounts or their respective incomes.”.