Non Resident Landlord Scheme Guidelines

Income Tax (Amendment No 28) ( Jersey ) Law 2007

Taxation of Non – resident landlords from 2009

As from 1st January 2009 the way in which non resident landlords are taxed is to alter.

Unless certain conditions are met, the agent managing the property on behalf of the tenant, or the tenant himself (if there is no managing agent) is legally obliged to deduct tax at the standard rate of 20% before paying the rent to the non resident landlord.

The conditions whereby rent can be paid and received gross are as follows:

(a)   The rent in respect of the property/properties is exempt from tax under Article 115;

       or

(b)   The non resident landlord has consistently complied with the requirements of the Income Tax Law in full
       and without delay and is able to provide his agent/tenant with a good compliance certificate.

(c)   In the case of tenants only if the rent paid to the non resident landlord is less than £2500 per annum
       or where the tenancy is for less than 1 year the proportionate amount of that sum which is determined
       by the duration of the tenancy.

In the case of point (b) above the non resident landlord must apply to the Comptroller of Income Tax on an annual basis for a good compliance certificate. This certificate must be presented to his managing agent or tenant to enable them to make the rental payments gross.
 
Although the new law does not come into effect until 1st Jan 2009, agents are able to register with the Income Tax Office from 1st July 2008.
 
The NRLS Agent Registration forms are available for collection from the Income Tax Helpdesk at Cyril Le Marquand House, or through the post by emailing jsytax@jerseymail.co.uk with your company name and address and how many Non Resident Landlords you represent.
 
Alternatively you can view and print the Non Resident Landlord S. Agent Registration Form here

Agents duties
Agents must:

• Register with the Income Tax Office within 30 days of 1st January 2009. Or, on becoming an agent after the 1st January 2009 within 30 days of becoming an agent.
• Deduct tax at the standard rate of 20% unless one of the conditions in (a) or (b) above are satisfied.
• Make quarterly returns and annual returns to the Comptroller of Income Tax.
• Pay the tax due to the Comptroller within 30 days of the end of each specified quarter (quarter ends being 30th March, 30th June, 30th September and 31st December).
  

Tenants duties
Tenants must:

• Deduct tax at the standard rate of 20% unless one of the conditions in (a) or (b) (c) above are satisfied.
• Make quarterly returns and annual returns to the Comptroller of Income Tax.
• Pay the tax due to the Comptroller within 30 days of the end of each specified quarter (quarter ends being 30th March, 30th June, 30th September and 31st December).

 Failure to comply
An agent who fails to register shall be guilty of an offence and liable to a fine of level 3 on the standard scale.

An agent or a tenant who fails to make an annual return to the Comptroller shall be guilty of an offence and liable to a fine of level 3 on the standard scale.
 
An agent or a tenant who fails to account for the tax due to the Comptroller shall be guilty of an offence and liable to a fine of level 4 on the standard scale.
 
A tenancy agreement shall be void to the extent that it provides for a tenant to pay rent without deduction of income tax or for an agent to account, without deduction of income tax, for rent received in contravention of this Law.