22 July 2011
Jersey is now better placed to attract High Value Residents following changes to the Island’s income tax laws.
The States have agreed to amend the Income Tax (Jersey) Law and Regulations in order to encourage High Net Worth Individuals to invest in the Island.
The revised tax regime has been introduced for individuals who are granted housing consent under Regulation 2(1)(e) of the Control of Housing and Work (Jersey) Law. The changes form part of a package of measures intended to increase the benefits of Jersey to High Value Residents.
The Minister for Treasury and Resources, Senator Philip Ozouf, said the decision to amend the law sent an important message that the Island welcomed new High Value Residents. He said “The changes are designed to encourage more wealthy individuals to move to Jersey, particularly those who wish to bring a business to the Island. This will have the effect of creating employment and enhancing economic activity in many sectors.”
Under the new tax regime, High Value Residents will be taxed at 20% on the first £625,000 of their income and 1% on all income thereafter. The new position also removes the distinction between income that has been earned within Jersey and income that has been earned outside Jersey.
Senator Ozouf said that the changes would bring ongoing benefits to the Island. He said “This change sends a clear signal that the States is committed to promoting investment in Jersey, to encouraging growth in employment and to diversifying the economy.”