The following published concession operated up to the year of assessment 2008. It is not applicable from the year of assessment 2009 but the basis of assessment of the rents etc. may remain 'grandfathered' for those companies who historically included Jersey rents and expenses in the computation of the investment income assessed under Schedule D Cases III to VI.
'An investment holding company is assessable under Schedules A and D on the basis of the income less management expenses of the year of assessment. Apart from the year in which income first arises and for the year of cessation, when the assessments must be computed on the statutory basis, assessments for other years may be made by reference to the income and expenses of the accounting year ended in the year of assessment. In the event of the first accounts covering a period of less than one year, the assessment for the second year must also be computed on the statutory basis.
- from the year of assessment 2009 the company must continue to submit its financial statements together with a tax computation showing separately the Jersey rents etc. and associated allowable expenses and the resultant Schedule A assessment
- the basis of assessment of the rents etc. may continue to be profits and gains arising in the financial year ending in the year of assessment. These are taxed on the company at the standard rate of 20%
- the basis of assessment of the investment profits and gains are those arising in the financial year ending in the year of assessment. These are taxed on the company at corporate rate of 0%. The relevant profits are subject to the shareholder attribution provisions
- the basis of assessment of all the profits and gains arising to investment holding company upon 'cessation' or winding up will be those for the period 1 January to the date in which that event occurs. The rents etc. are taxed on the company at the standard rate of 20%. The investment relevant profits are subject to the shareholder attribution provisions
- however, as an alternative, the company may elect in writing by 31 December 2010 for the 2008 assessment to be based on all profits and gains arising in the period 1 January 2008 to the end of the financial year in 2008. All the profits and gains will be taxed on the company at the standard rate of 20%. The basis of assessment of all the profits and gains arising in the year of 'cessation' or winding up will be those arising in the financial year (and / or periods) ending in the year in which that event occurs. The rents etc. are taxed on the company at the standard rate of 20%. The investment relevant profits are subject to the shareholder attribution provisions. The election shall be irrevocable.
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