Budget statement
You can find the full draft budget statement for 2019 on the States Assembly website.
2019 draft budget statement
Personal income tax amendments
Income tax exemption thresholds
The standard exemption threshold increased from £14,900 to £15,400.
The married/civil partnership exemption threshold increased from £23,950 to £24,800.
Second earner's allowance
Second earner's allowance increased from £5,850 to £6,000.
Higher child allowance
Higher child allowance removed, without restricting the additional allowance for single parents. This change is as a result of the higher education funding measures being introduced.
2019 tax allowances and reliefs
Non-residents
A new relief for non-residents to address hardship issues for those with low worldwide income and those suffering double taxation.
Tax relief for non-residents
Changes to personal tax return filing dates
The deadline dates for personal tax returns will be as follows:
- in the case of a return being delivered electronically, midnight on 31 July in the year following the year of assessment
- in the case of any other return, midnight on 31 May in the year following the year of assessment
Changes to late filing fee amounts
If a tax return is not delivered by the specified time, the penalty is now £300.
If a return is not filed by midnight on the date that is 3 months after the specified time a penalty of £50 will be applied for each month that the return remains undelivered up to a maximum of £450.
Change to late payment surcharge for individuals
The late payment surcharge applies to a person who has to pay an instalment under article 41A.
The payment deadline is now midnight 30 November of the year following the year of assessment.
Foreign charities which can benefit from tax relief in Jersey
Amend Article 115(aa) and (ab) of the Income Tax (Jersey) Law, so that an entity which is an excepted foreign charity according to the definition in the Charities Law will qualify for tax relief.
Applying for charity tax exemption
High value residents
Change the tax rules so that Jersey rental income can be taken into account when determining whether an HVR has reached the £725,000 taxable income threshold.
Pension scheme amendments
Taxation of commutation of trivial pension scheme
Income tax law updated to prevent pension holders from utilising the different commutation provisions to access more than 30% of the pension fund tax free.
Commutation - transfers between Jersey approved schemes
Relax the restriction where the scheme from which the transfer occurs is an approved Jersey scheme and the scheme manager of the receiving scheme has received full details of any previous commutations from the scheme manager of the transferring scheme.
This approach will not be permitted where the transferring pension scheme is not an approved Jersey scheme.
Pension administrator tax guidance notes
Additional wording to correct an erroneous legislative reference
Article 131CF will benefit from the words 'lump sum' being added.
Corporate tax amendments
Economic substance
A commitment to introduce legislation that addresses the concerns of the EU Code of Conduct Group.
Economic substance for companies
Regulations making powers for the taxation of new types of legal bodies
Include a new power in the Income Tax Law to make regulations in respect of the taxation of new types of legal bodies.
International employer savings schemes
Amend the Income Tax Law to ensure that the investment income arising from international employer savings schemes are ordinarily outside the scope of Jersey tax.
International Savings Plans
GST on care costs
With the alignment of the regulation of care homes, care at home (domiciliary care) and adult day care services the GST treatment applicable on the supply of goods or services in these contexts should also be aligned (i.e. exempt from GST) from 1 January 2019.
Large Corporate Retailers transitional relief
Transitional arrangements relief from taxation for Large Corporate Retailers and certain financial services companies.
Large Corporate Retailer (LCR) rules
Amendments to the rules relating to the taxation of LCR to ensure they are clear and operating as intended including:
- clarification that when calculating the amount of profit for determining the rate of tax to be applied to a LCR, there is no deduction made in respect of unilateral relief
- clarification of the rules relating to the payment of dividends by LCR and also the rules relating to the amount of credit a LCR may claim when receiving a dividend
Changes to late payment surcharge for companies
The deadline date for payment of tax for companies is now midnight on 30 November of the year immediately following the year of assessment or in the case of a large company within the meaning of Article 41AA(7), midnight on 30 September of the year immediately following the year of assessment.
International Services Entity
In the 2018 budget the scope of entities that were able to register as an ISE was broadened. Having had the rules in operation for one ISE return cycle a small number on minor amendments have been identified which will clarify the rules and ensure they are operating as intended.
Register or renew an ISE
Changes to late filing fee amounts
If a tax return is not delivered by the specified time, the penalty is now £300.
If a return is not filed by midnight on the date that is 3 months after the specified time a penalty of £100 will be applied for each month that the return remains undelivered up to a maximum of £900.
Land transaction tax amendments
First time buyer rates for transfers
Additional support for first time buyers by extending the bands of nil, 1% and taper rates of land transaction tax.
Security interest rates
A new lower rate for owner occupied properties with a value of £700,000 or less.
Increase to land transaction tax on residential property
The land transaction rate for property transfers valued over £500,000 to be increased by 0.5% for each band.
Calculating your land transaction tax
Enveloped properties
A public consultation will be issued to remove the tax incentive to envelop commercial property.
Taxation of transactions involving enveloped property
Employers amendments
Penalties for late returns
If a return of information regarding employees or a return of information regarding building sub-contractors is not made by the specified time there will be a penalty of £100.
If a return is not filed by midnight on the date that is 3 months after the specified time a penalty of £100 will be applied for each month that the return remains undelivered up to a maximum of £900.
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