|Department||Treasury and Exchequer|
|Type of consultation||White paper|
|Deadline for comments||10/01/2014|
About the consultation
Attitudes towards retirement are changing; driven by longer life expectancy, people are working later into life. In many cases this work is part time so people want the flexibility to mix employment income with a pension income, creating what is known as a ‘flexible retirement’.
The tax rules applying to occupational pension schemes in Jersey have not kept up with these changes. Under the existing tax rules it’s necessary for a member of an occupational pension scheme to retire before they are able to draw their pension. This means they are required to make a choice between working and retiring, barring them from the option of flexible retirement. It is proposed that the tax rules applying to occupational pension schemes are modernised, facilitating the option of flexible retirement.
The existing tax rules that apply to pension schemes are lengthy, complex and difficult to understand; as changes are already being made to introduce flexible retirement, there is an opportunity to simplify and consolidate the rules so that they are easier to understand. Greater understanding should encourage more people to make sufficient savings for the retirement they want.
To ensure that the new tax rules are fit-for-purpose we have released a draft of the legislation for public consultation before they are lodged with the States in spring 2014. This should result in the most appropriate legislation.
We’re also consulting on a further four pension related topics. The comments made in relation to these topics will be considered and draft legislation will be brought forward in spring / summer 2014 for consultation if appropriate.
Download tax rules applying to pensions and pension schemes white paper (size 1.24mb)
How to submit comments to the consultation
Please submit your comments by post or via email.
Write to us:
Director of Tax Policy
Treasury and Resources Department
Cyril Le Marquand House
PO Box 353
Responses to the consultation
On Wednesday 21 May 2014 the Treasury published a response to the consultation on the tax rules applying to pensions and pension schemes; summarising the responses received and outlining a number of key changes to the initial proposals.
These changes will be reflected in an amendment to the Income Tax Law, which will be lodged with the States as part of the 2015 Budget (in July 2014) for debate in the autumn. If agreed, the changes will become effective from 1 January 2015.