16 May 2023
The Minister for Treasury and Resources, Deputy Ian Gorst, has lodged legislation to increase
the minimum tax payable by new 2(1)(e) residents under the High Value Residency Scheme.
The minimum tax paid by new high net worth residents will rise to £250,000 a year under the
legislation proposed.
The Chief Minister, Deputy Kristina Moore said: “This Government welcomes people who generate
wealth and contribute to sustainable economic growth, whether home-grown or those who want
to make Jersey their home and become part of our community. We believe we have a package of
measures that will maintain a stable and supportive environment for relocation and investment,
whilst requiring a modest increase to their contribution to the public purse.
“We value our 2(1)(e) community; they are a dynamic group of people who contribute generously
to Jersey. These changes reflect the value of Jersey’s offer to them: a safe, stable, and welcoming
community, natural beauty, excellent health, and education systems, in a well-connected location.”
In the Government Plan last year, the States Assembly agreed to increase the minimum tax
payable by new residents under the current (Version 4) scheme from January 2023 to £170,000
a year – reflecting the increase in the cost of living since Version 4 was introduced in 2018 – a
process set out under existing legislation.
The proposed new legislation follows a review by the Housing and Work Advisory Group
(HAWAG), chaired by the Chief Minister. HAWAG examined the available evidence, including
the number of applications and house prices data, and considered the views of recent
applicants and industry professionals.
The rise will not affect existing 2(1)(e) residents, who will continue to pay tax at their current
rate.
Other planned changes following the review include:
- increasing the minimum price of a property new 2(1)(e) residents can purchase from
£1.75 million to £3.5 million
- a new formal expectation that applicants should have a net worth of at least £10
million, excluding their place of residence
Ministers have also asked for more work to be done to better identify the levels of charitable
giving by 2(1)(e) residents through a kitemark scheme.
Deputy Gorst said: “I am pleased to support the Housing and Work Advisory Group, ensuring
that new residents contribute even more to the public purse. Our 2(1)(e) residents already
deliver significant benefits to Jersey, both economically and socially, and are very much
welcome as part of our diverse community.”
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