This is a summary of the main tax amendments made by the Finance Law 2022. You can find all the amendments on the Jersey Law website.
Finance (2022 budget) (Jersey) Law
Personal income tax amendments
Income tax exemption thresholds
The standard exemption threshold increased from £16,000 to £16,550.
The married / civil partnership exemption threshold increased from £25,700 to £26,550.
Second earner's allowance
Second earner's allowance increased from £6,300 to £6,550.
2022 tax allowances and reliefs
Calculation of ITIS rate
The ITIS formula changed to account for expenses and pension payments deducted from income. This will reduce the standard rate calculation where these deductions are included.
This amendment will also allow an effective rate to be calculated by reference to the employee's expected earnings arising in what remains of the assessment year.
How the standard rate is calculated
Age from which ITIS deductions apply
Income tax deductions are not required if an employee is below school leaving age as defined by Social Security Law.
Personal tax residence
Apportionment of income, thresholds and allowances in the years of arrival and departure is placed on a statutory footing.
The basis of apportionment is changed from complete weeks to days of residence.
A taxpayer will be resident for that day if they are present in Jersey at midnight.
Residency concessions R3 and R4 and personal tax concessions P2, P3 and P4 are withdrawn from 1 January 2022.
Business interest relief
Changes are made to give relief for loan costs incurred where a property is acquired as part of a commercial letting business. The law also provides a reduction in the threshold for giving relief for loans/ borrowings where shares in a trading company are acquired and the borrower is working in the business from 10% to 5%.
Business interest concessions 5, 6 and 9 are withdrawn from 1 January 2022.
Virtual Commissioners' hearings
The Commissioner of Appeal can meet virtually, if they decide it is appropriate to do so.
Providing directions to Comptroller
The Minister for Treasury and Resources can now provide general directions to the Comptroller of Revenue.
Goods and services tax
Registration of offshore retailers
Registration of offshore retailers (£300K importation threshold) will be mandatory from 1 January 2023 although they can register voluntarily from January 2022. Smaller offshore retailers whose taxable supplies are below the threshold have the option to voluntarily register for GST.
How to register your business for GST
The law has been clarified that alternative investment fund services businesses can't be registered as a trust company vehicle and are liable to a different fee.
Register or renew an ISE