Budget Statement 2012
Produced by the
Treasury and Exchequer
Treasury and Resources
and published on
23 Sep 2011
Prepared internally, no external cost
2012 Budget StatementInternational Services Entities consultationBusiness Tax Review: corporate taxation consultation
The draft 2012 Budget Statement was issued on 23 September 2011, with a date for debate of 8 November 2011.
There are no significant tax raising measures proposed in this Budget, but those which are proposed enable additional support to be given to working families and those on lower incomes. The main proposals are summarised below.
- increase income tax exemption thresholds by 4.5% in line with the annual increase in inflation for the year to June 2011 and retain tax allowances
- introduce measures to support working parents by providing significantly more generous tax relief for childcare costs
- introduce measures for higher earners including a restriction of pension relief and a cap on the level of termination payments that may be made tax-free
- abolish the International Business Company status in line with Jersey’s commitment to the EU Code of Conduct on Business Taxation
- introduce a further transitional measure to the repeal of the deemed distribution rules
- bring the taxation of Jersey property development income generated by Incorporated Limited Partnerships and Separate Limited Partnerships in line with the tax treatment applying to Limited Partnerships
- introduce some administrative changes to the pension rules to provide clarity and simplification
- update the ITIS provisions to take account of the new Social Security Insolvency Benefit.
Goods and Services Tax
- increase the fees charged to banks which elect to be International Services Entities from £30,000 to £50,000, reflecting the increase in the general rate of GST in 2011
- introduce a number of administrative amendments relating to States-provided nursery fees and the definition of “aircraft”.
- no increase in fuel duty for 2012.
- increase the duty on alcohol and tobacco by 5% and 10% respectively representing:
- increase all rates of Vehicle Emissions Duty by 5%.
Stamp Duty proposals
Increase court fees under the Stamp Duties and Fees and the Land Transaction Tax Laws.
A report on the Business Tax Review findings and a summary of responses to the Green Paper on International Services Entity fees were published along with the Budget Statement.