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2018 budget tax summary

​Budget statement

You can find more information about the 2018 budget on the States Assembly website.

Draft budget statement 2018

Personal income tax amendments

Income tax exemption thresholds

The standard exemption threshold increased from £14,550 to 14,900.

The married exemption threshold increased from £23,350 to £23,950.

Second earners allowance

Increased from £5,000 to £5,850

High value residents

Increase in the minimum annual tax contributions for new high value residents from £125,000 to £145,000. 

The minimum tax contribution for all HVR's in the current regime to be reviewed every 5 years from 2023.

2018 tax allowances and reliefs

Pension scheme measures

Fund transfers by occupational pension schemes

Extension to the circumstances in which pension fund transfers can take place, so that the scheme manager of an approved Jersey occupational pension scheme is able to transfer the whole, or part of the fund value of all of the members, or part of the membership, of the scheme to another approved Jersey occupational pension scheme.

Targeted anti-avoidance rule - transfers to overseas schemes

Anti-avoidance rules will apply where all of the following apply:

  • a pension fund transfer from Jersey to another jurisdiction occurs
  • the pension holder establishes tax residence in Jersey in the year of assessment in which the transfer occurs, or any of the following three years of assessment
  • following the transfer but at a time that the pension holder is non-Jersey resident, a lump sum payment is made to the pension holder from the fund value transferred

When this rule applies, the pension holder will be deemed to have received, on the date that they establish residence in Jersey, a lump sum payment from an overseas pension scheme which is taxable in Jersey.

Greater flexibility with small pension funds

The monetary limit for trivial pension funds increased to £35,000 and the prohibition on paying a lump sum where the pension holder has commenced benefits is removed.

For very small pension funds (those worth less than £19,000) pension schemes may allow the whole of the pension to be paid out at any time as taxable income of the pension holder. This is subject to a £50,000 cap on the total amount that can be paid out to prevent pension holders seeking to access all of their pension savings by breaking their pension fund into a series of small pension funds.

Pension administrator tax guidance notes

Corporate income tax measures

Large corporate retailers

The assessable profits of large corporate retailers to be taxed at 20%.

Taxation of large corporate retailers information

Widening of definition of 'financial services company'

The definition of 'financial services company' has been widened to include:

  • companies registered under the Financial Services (Jersey) Law 1998 to carry out general insurance mediation business
  • companies registered with the Jersey Financial Services Commission as a registrar
  • companies holding permits under the Insurance Business (Jersey) Law 1996
  • finance companies - companies trading in the provision of credit/finance to customers

Increase in ISE fees

All ISE fees (with the exception of the fees charged for 'vehicles administered' and CIF/AIF vehicles) revalorised upwards by reference to the June 2017 RPI figure.

 ISE registration fees

GST on flu vaccinations

Align the GST treatment of flu vaccinations delivered by pharmacists and doctors.

Deduction of rates by landlords renting property in Jersey

Any landlord receiving rents from property situated in Jersey may no longer deduct property rates (i.e. foncier rate, occupier rate and Island wide rate) when calculating the amount  of rental income on which they pay tax.

Foreign limited liability partnerships

Amend the tax legislation so that foreign LLPs get the same tax treatment which is applied to LLPs established in Jersey which has been the established practice.

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