If you receive interest from a bank account or any other type of financial investment, held in Jersey or overseas, it's taxable for the year in which the income arises.
Some investments that are exempt from tax in their own country are taxable in Jersey.
The following is a list of common examples that pay an income taxable in Jersey:
- Jersey bank accounts including the interest on CI Co-Operative accounts, but not the dividend income
- overseas bank accounts
- United Kingdom Individual Savings Accounts (ISAs)
- NS&I guaranteed growth bonds
- NS&I guaranteed income bonds
- NS&I direct saver
- NS&I income bonds
- government securities
- loan interest received
- any investment product that pays an income or a guaranteed return that's not capital growth
Winnings from NS&I premium bonds aren't taxable (it's a prize from a draw, not income) and interest from NS&I savings certificates are exempted from tax in Jersey.
If you hold shares, then it’s likely that you will receive income from those shareholdings.
The most common type of income are dividends, which are taxable in Jersey, even if foreign tax has already been paid.
Channel Islands Co-Operative Society dividends are not taxable.
The following deductions can be made from foreign investment income:
- foreign tax paid in the country where the income has arisen
- annual interest or other annual payments payable out of the foreign income to a person not resident in Jersey, before the foreign income is received in Jersey