Land and property transactions
Supplies of land and property are zero-rated for GST in cases where:
- the dwelling is sold or leased (but not if the let is for less than three months or there is a restrictive covenant on occupation by the person who is leasing the land)
- there is grant of land in freehold or leasehold grant for more than nine years if, at the time of the grant:
- the land is subject to planning permission under the Planning and Building (Jersey) Law 2002 for the construction of a dwelling or building intended to be used only for residential purposes;
- there is a completed building on the land that is a dwelling or will only be used for residential or charitable purposes
Unless a supply of land and property falls within the criteria for zero-rating it is subject to GST at the standard rate.
For more information on when a supply of land or property can be zero-rated for GST, see Schedule 6, paragraphs 1 and 2 of the GST law 2007.
Schedule 6 of the Goods and Services Tax (Jersey) Law 2007 on Jersey Law website
Share transfer of properties
Generally the sale of shares in a property owning company is exempt from GST, so any GST incurred in the costs of making a supply of shares is not deductible as input tax on your GST return. You should read the information relating to partial exemption should you make both taxable and exempt supplies.
Partial exemption from GST input tax
However the “Share Transfer” of a dwelling is a zero rate supply if the Share falls within the description contained in Schedule 6 paragraph (1) (c) or (d).
The 'GST land and property' leaflet explains how transactions involving land and property are treated for GST. The leaflet covers:
- which transactions are zero-rated for GST
- which transactions are standard-rated for GST
- share transfers
- service charges
- sports facilities and physical recreation
- developers agreements
- supplies between landlords and tenants
- service charges on commercial buildings
- other land transactions, such as:
- beneficial owners of land or buildings
- joint owners of land or buildings
- compulsory purchases
- options to purchase or sell an interest in land or a building
- rent recovery by the landlord
- sureties and guarantors
- free supplies of land and buildings
- transfer of a going concern
- stamp duty