Jersey Law 30/1986
FINANCE (JERSEY) LAW, 1986.
____________
A LAW to
continue certain expiring fiscal Laws; to prescribe the standard rate of income
tax for the year nineteen hundred and eighty-five; to amend the law relating to
income tax in relation to the charge to tax under Schedule A, personal
allowances and reliefs and the reduced rate of tax
for individuals; and to amend further the Wines and Spirits (Revenue Duties)
(Jersey) Law, 1973 to provide for a revenue duty to be charged on cider or perry relative to its alcoholic strength; sanctioned by
Order of Her Majesty in Council of the
5th day of
NOVEMBER, 1986.
____________
(Registered on the 12th day of December, 1986.)
____________
STATES OF JERSEY.
____________
The 15th day of
January, 1985.
____________
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, 1985.
PART II
Standard
rate of income tax for 1985
ARTICLE
2
There shall be levied and charged in the Island for the year
nineteen hundred and eighty-five in accordance with the provisions of the
Income Tax (Jersey) Law, 1961, as
amended by any subsequent enactment, including this Law, income tax at the
standard rate of twenty pence in the pound.
PART III
Amendment
of certain provisions of the Income Tax Law relating to the charge to tax under
Schedule A
ARTICLE
3
(1) In
Article 16 of the Income Tax (Jersey) Law, 1961, as
amended, (hereafter in this Part referred to as “the
principal Law”) –
(a) in
paragraph (1) sub-paragraph (a) shall be deleted;
(b) in
paragraph (2), the words “values or” shall be deleted.
(2) Article
21, paragraph (2) of Article 22, and
Article 30 shall be deleted.
(3) For
Articles 50 to 56 inclusive of the principal Law there shall be
substituted the following Articles –
“ARTICLE 50
Interpretation of Part VIII
(1) In
this Part of this Law –
‘land’ includes buildings, tenements, heritages and hereditaments;
‘lease’ includes an agreement for a lease, and any
tenancy, but does not include a hypothec or other charge;
‘owner’ means, in relation to any land, the person for
the time being having the enjoyment of that land, either as owner or usufructuary owner or in the exercise of rights of dower,
‘franc veuvage’, seignorialty
or otherwise;
‘premium’ includes any like sum, other than rent, paid,
and the value of any consideration given, on or in connexion
with the granting of a tenancy, except insofar as other sufficient
consideration for the payment is shown to have been given.
ARTICLE 51
Schedule A
The Schedule referred to in the Law as Schedule A is as follows
–
1. Tax
under this Schedule shall be charged on the annual profits or gains arising in
respect of any rents or receipts as follows, that is to say –
(a) rents
under leases of land in the Island,
(b) rentes, and
(c) other
receipts arising to the owner of land in the Island from, or by virtue of, his
ownership of that land:
Provided that tax shall not be charged under this Schedule in
respect of any interest of money.
2. Tax
under this Schedule shall be charged by reference to the rent or receipts to
which a person becomes entitled in the year of assessment.
3. If
rent is payable under a lease under which the tenant is entitled to the use of
furniture, and tax in respect of the payment for its use is chargeable under
Schedule D of this Law, tax in respect of the rent shall be charged under Schedule
D instead of under this Schedule:
Provided that the person charged or liable to be charged shall be
entitled, on giving notice in writing to the Comptroller within two years after
the end of the year of assessment, to elect that this paragraph shall not apply
and where such notice is given, there shall be made such additional
assessments, reductions of assessments or repayments of tax as the case may
require.
ARTICLE 52
Deductions under Schedule A
(1) Subject
to the provisions of this Article, in computing the amounts of the profits or
gains to be charged under this Schedule, there shall be deducted the normal
outgoings paid by the person chargeable in respect of the profits or gains.
(2) For
the purposes of paragraph (1) of this Article, the term ‘normal
outgoings’ means the following payments, not being payments of a capital
nature, made in respect of the land to which the profits or gains relate, that
is to say –
(a) payments
for maintenance, repairs, insurance and management;
(b) parochial
rates, including rates which are by law charged on the occupier which the
person chargeable is obliged to defray; and
(c) rents,
rentes or other periodical payments:
Provided that no deductions shall be made for any interest of
money, or any annuity or other annual payment.
(3) In
the case of –
(a) payments
for maintenance and repairs, deductions shall be made for payments incurred by
reason of dilapidation to the extent only that the dilapidation is attributable
to a period falling within the currency of the lease, or to a period during
which the person chargeable was the landlord in relation to a previous lease;
(b) other
payments, deductions shall be made only for payments incurred in such a period
as aforesaid;
(c) a
receipt other than rent payable under a lease, there shall be deducted so much
of any other payment made by the owner as constituted an expense of the
transaction.
(4) The
deductions allowable under this Article shall be made from the profits or gains
chargeable for the year of assessment in which the payments are made:
Provided that where the profits or gains chargeable are not
sufficient to allow the whole of the deductions to be made, the amount not
deducted shall be deducted from the profits or gains for the earliest year of
assessment from which it can be deducted.
ARTICLE 53
Relief for rent not paid
If a person proves that he has not received an amount which he was
entitled to receive in respect of any rents or receipts chargeable under
Schedule A, and that –
(a) the
non-receipt was attributable to the default of the person by whom it was
payable and the person chargeable has taken all reasonable steps available to
him to enforce payment; or
(b) the
person chargeable has waived payment of the said amount without consideration
and in order to avoid hardship to the person by whom it was payable;
the person chargeable shall be treated as if he had not been
entitled to the said amount.
ARTICLE 54
Treatment of premiums and other payments
as rents
(1) If
payment of any premium is required under a lease, or otherwise under the terms
subject to which a lease is granted and the duration of the lease does not
exceed fifty years, the person entitled to the premium shall be treated for the
purposes of this Law as becoming entitled when the lease is granted to an
amount by way of rent (in addition to any actual rent) equal to the amount of
the premium reduced by one-fiftieth of that amount for each complete period of
twelve months (other than the first) comprised in the duration of the lease:
Provided that where the said premium is payable by instalments, the amount of each instalment
shall be treated as rent for the year in which it becomes payable.
(2) For
the purposes of this Article, if any sum is payable by a tenant as
consideration for the surrender of a lease, or the variation or waiver of any
of the terms of a lease, the lease shall be deemed to have required the payment
of a premium (in addition to any other premium) of the amount of that sum.
(3) If,
in respect of a lease granted for a period which does not exceed fifty years, a
premium is paid on the assignment of the lease or as consideration for the
grant of a sub-lease, the person entitled to the premium shall be treated for
the purposes of this Law as becoming entitled when the premium is payable to an
amount by way of rent equal to the amount of the premium reduced by the
appropriate fraction of any amount of premium chargeable as rent on the person
by whom the lease was granted:
Provided that no reduction as aforesaid shall be made in respect of
any premium which has been allowed as a deduction in computing the income of
any person for income tax purposes.
(4) For
the purpose of paragraph (3) of this Article, the ‘appropriate
fraction’ means the fraction arrived at by dividing the period for which the
assignment or sub-lease is granted by the period for which the lease was
granted.
ARTICLE 55
Persons chargeable
Tax under Schedule A shall be charged on and paid by the persons or
bodies receiving or entitled to the profits or gains in respect of which tax
under that Schedule is, in this Law, directed to be charged.”
(4) For
Article 69 of the principal Law there
shall be substituted the following Article –
“ARTICLE 69
Deduction for premiums payable
(1) Where
any land in the Island is occupied for the purposes of any trade or profession,
a deduction shall, in estimating the amount of annual profits or gains arising
from that trade or profession, be allowed for any premium paid in consideration
of the grant of a lease or sub-lease, or for the assignment of a lease, of that
land to the extent that the premium has been charged to tax under Schedule A of
this Law.
(2) In
this Article ‘land’ and ‘premium’ have the same
meanings as in Part VIII of this Law.”
(5) In
Article 70 of the principal Law –
(a) in
sub-paragraph (c) the words “or annual value”; and
(b) in
the proviso to that sub-paragraph the words “annual value or of
the”;
shall be deleted.
ARTICLE
4
This Part of this Law shall have effect for the year nineteen
hundred and eighty-five and ensuing years.
Part IV
Increase
of personal allowances and reliefs under Income Tax Law and repeal of provision
relating to reduced rate of tax
ARTICLE
5
(1) In
Article 92 of the Income Tax (Jersey) Law, 1961, as
amended, (hereafter in this Part referred to as
“the principal Law”) –
(a) in
paragraph (1) for the words “one thousand eight hundred and fifty
pounds” there shall be substituted the words “two thousand
pounds”;
(b) in
paragraph (2) for the words “five thousand one hundred pounds” and
“seven thousand seven hundred pounds”, wherever they occur, there
shall be substituted the words “five thousand four hundred and fifty
pounds” and “eight thousand two hundred pounds” respectively.
(2) In
Article 92A of the principal Law –
(a) in
paragraph (1) for the words “three thousand four hundred pounds”
and “four thousand nine hundred and fifty pounds” there shall be
substituted the words “three thousand six hundred and fifty pounds”
and “five thousand three hundred pounds” respectively;
(b) in
the first proviso to paragraph (1) for the words “three thousand four
hundred pounds” there shall be substituted the words “three
thousand six hundred and fifty pounds”, for the words “four
thousand nine hundred and fifty pounds” there shall be substituted the
words “five thousand three hundred pounds” and for the words
“nine hundred and fifty pounds”, in both places where they occur,
there shall be substituted the words “one thousand and twenty-five
pounds”;
(c) in
the second proviso to paragraph (1) for the words “three thousand four
hundred pounds” and “four thousand nine hundred and fifty
pounds” there shall be substituted the words “three thousand six
hundred and fifty pounds” and “five thousand three hundred
pounds” respectively.
(3) In
Article 94 of the principal Law –
(a) in
paragraph (1) for the words “one thousand seven hundred pounds” and
“eight hundred and fifty pounds” there shall be substituted the
words “one thousand nine hundred and seventy-five pounds” and
“one thousand and fifty pounds” respectively;
(b) in
paragraph (2) for the words “one thousand one hundred and fifty
pounds” there shall be substituted the words “one thousand two
hundred and twenty-five pounds”.
(4) In
paragraphs (1) and (3) of Article 95 of the principal Law for the words “nine hundred and fifty
pounds” there shall be substituted the words “one thousand and
twenty-five pounds”.
(5) In
paragraph (1) of Article 96 of the principal Law for the
words “seven hundred and fifty pounds” there shall be substituted
the words “eight hundred pounds”.
(6) In
paragraph (1) of Article 97 of the principal Law for the
words “seven hundred and fifty pounds” there shall be substituted
the words “eight hundred pounds”.
(7) In
Article 98 of the principal Law for the
words “seven hundred and fifty pounds” there shall be substituted
the words “eight hundred pounds”.
(8) In
paragraph (1) of Article 98A of the principal Law for the words “seven hundred and fifty
pounds” there shall be substituted the words “eight hundred
pounds”.
(9) In
paragraph (1), in the proviso to paragraph (1), and in paragraph (3), of
Article 99 of the principal Law for the
words “seven hundred and fifty pounds”, wherever they occur, there
shall be substituted the words “eight hundred pounds”.
(10) In
Article 100 of the principal Law for the words “seven hundred and fifty
pounds” there shall be substituted the words “eight hundred
pounds”.
ARTICLE
6
Article 102 of the principal Law shall be
repealed.
ARTICLE
7
This Part of this Law shall have effect for the year nineteen
hundred and eighty-four and ensuing years.
Part V
Amendment
of Wines and Spirits (Revenue Duties) (Jersey) Law, 1973
ARTICLE
8
(1) In
Article 1 of the Wines and Spirits (Revenue Duties) (Jersey) Law, 1973, as amended
(hereafter in this Part referred to as “the principal Law”) –
(a) after
the definition of “ ‘impôt
duty’ and ‘revenue duty’ ” there shall be inserted the
following definition –
“ ‘made-wine’ means any liquor made from fruit,
vegetable materials, fruit and sugar, or from fruit and sugar mixed with any
other materials and which has undergone a process of fermentation in the
manufacture thereof and includes cider, perry, mead, metheglin and saké, but
does not include wine;”
(b) after
the definition of “strength” there shall be inserted the following
definition –
“ ‘wine’ means any liquor obtained from the
alcoholic fermentation of fresh grapes or the must of fresh grapes, whether or
not the liquor is fortified with spirits or flavoured
with aromatic extracts;”
(c) for
the definition of “wines” there shall be substituted the following
definition –
“ ‘wines’ means wine and made-wine;”.
(2) For
Article 4 of the principal Law there
shall be substituted the following Article –
“ARTICLE 4
Duty on wines
There shall be charged on all wines imported into, or produced or
manufactured in, the Bailiwick, a revenue duty at the appropriate rate
specified in the Second Schedule to this Law.”
(3) For
the Second Schedule to the principal Law there
shall be substituted the Schedule so numbered set out in the Second Schedule to
this Law.
ARTICLE
9
This Part of this Law shall be deemed to have come into effect at
5.00 p.m. on the fifth day of December, 1984.
PART VI
Short
title
ARTICLE
10
This Law may be cited as the Finance (Jersey) Law, 1986.
E.J.M. POTTER
Greffier of the States.
FIRST SCHEDULE
(Article 1)
Fiscal Laws continued in force
Import Duties (Jersey) Law, 1932.
“Loi (1937) sur la
perception d’un impôt sur le tabac.”
“Loi (1937) sur la
perception d’un impôt sur la bière.”
“Loi (1940)
autorisant la perception d’un impôt sur certaines huiles et
essences.”
Revenue Duty on Oils and Spirits (Administration) (Jersey) Law,
1940.
SECOND SCHEDULE
(Article 8(3))
“SECOND
SCHEDULE
(Article 4)
Duty on Wines
|
Strength of wines
|
Rate
per hectolitre
|
|
Cider
or perry not exceeding 8.6 per cent volume
|
£8.80
|
|
Wines not exceeding 15 per cent volume (except as
provided in preceding item)
|
£36.95
|
|
Wines exceeding 15 per cent volume but not exceeding
22 per cent volume
|
£44.87
|
|
|
per litre of
alcohol
in the wines
|
|
Wines exceeding 22 per cent volume
|
£5.56
|
For the purposes of this Schedule –
(a) the
expression ‘8.6 per cent volume’, ‘15 per cent volume’
and ‘22 per cent volume’ refer respectively to the percentage of
alcohol determined in accordance with the provisions of Article 2 of this Law;
and
(b) the
expression ‘per litre of alcohol in the
wine’ means the quantity of alcohol in the wine as so determined.”