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Government of

Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

2021 budget tax summary

​Finance Law

This is a summary of the main tax amendments made by the Finance Law 2021. You can find all the amendments on the Jersey Law website.

Finance (2021 budget) (Jersey) Law 

Personal income tax amendments

Income tax exemption thresholds

The standard exemption threshold increased from £15,900 to £16,000.

The married / civil partnership exemption threshold increased from £25,550 to £25,700.

Second earner's allowance

Second earner's allowance increased from £6,250 to £6,300.

Child care tax relief

The child care tax relief income disregard increased to £6,300 (the amount equal to second earner's allowance).

2021 tax allowances and reliefs

General amendments

Joint access to information

The Comptroller can provide income tax information, for the year of assessment 2021 and subsequent years, in respect of one spouse or civil partner to the other spouse or civil partner.

Taxation of cannabis 

The States can make Regulations for the taxation of companies within the cannabis industry.


The set-off provisions in the Revenue Administration Law are amended so that a GST or income tax overpayment can be applied to any outstanding amount of tax due under either the GST Law or the Income Tax Law.

Social Security contributions

The Comptroller now has responsibility for collecting social security contributions as agent for the Minister for Social Security.

Service of notices

The Comptroller is now able to serve a note by delivery through any means of electronic communication, including an online account.

Foundation returns

The £100 monthly penalty for late delivery of a return is now extended to foundations.

Dividends from foreign companies

The existing practice that a dividend received out of the capital profits of a foreign company is not chargeable to tax has been clarified.

Clos de Paradis Housing Trust

Clos de Paradis Housing Trust is added to the list of social housing providers who are exempt from income tax.

Regularising concessions

The following changes put former concessions onto a statutory footing:

  • An employer can deduct, as an expense, the contributions they pay into a group life insurance scheme.
  • A person with income from a foreign trade may deduct, as an expense, the foreign tax paid in respect of that trade if no relief for double taxation or unilateral relief has been given.
  • Where plant and machinery is transferred, a successor trade may claim the predecessor trade’s net qualifying expenditure on plant and machinery, after deducting the annual allowance of the predecessor.
  • A trader may claim loss relief in respect of the annual capital allowance for the purchase of plant or machinery of the trade.


Lump sums from overseas schemes

The election deadline in respect of the exemption from tax for lump sums paid out of overseas pension schemes has been aligned to the electronic personal tax filing deadline of 31 July.

Assessment following rule breach

Where a breach of pension scheme rules has occurred, the Comptroller may make an assessment and abate the rate of tax to be applied. The amount of the abatement will now be determined when the assessment is made. The person may then appeal the assessment and/or the abatement in the normal way.

Goods and services tax

ISE fees

The fees payable by an entity wishing to register as an International Service Entity (ISE) have been increased.

Register or renew an ISE

Land transaction tax

First time buyers

First time buyers, purchasing a property through an assisted ownership scheme, will only have to pay stamp duty (or land transaction tax) on the affordable price element of the property.

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