Tax relief for non-residents from 2018
If you aren't resident in Jersey, but have Jersey income which is taxable in Jersey, you may be able to claim relief if:
- your world income is below the Jersey exemption threshold
- you're subject to tax in Jersey and there's no relief available from double taxation
- you're subject to tax in Jersey and there is relief available from double taxation
You'll need to complete a non-resident tax return and the non-resident relief claim form. The amount of relief you'll get will depend on the calculations below.
Low worldwide income relief
Income taxable in Jersey, but total worldwide income below the relevant Jersey tax exemption threshold
If your total worldwide income is below the relevant Jersey tax exemption threshold, the rate of Jersey tax is 0%.
Reduced rate relief
If your worldwide income exceeds that standard income tax exemption threshold, the Jersey tax rate paid on your Jersey source income may be reduced below 20%.
No relief available from double taxation
If you're subject to tax on your Jersey income in Jersey and you're non-resident, you can claim tax relief if you:
- aren't subject to tax on any of your Jersey income where you live; or
- are subject to tax but aren't entitled to any relief on your Jersey income where you live
The rate of Jersey tax is a graduated rate calculated as follows:
|The total amount of your Jersey income and non-Jersey income||A|
|The amount of 'A' less your Jersey threshold exemption||B|
|Whichever is the higher of your threshold exemption less 'B' or zero||C|
|'A' less 'C'||D|
|The standard rate of tax × 'D'||E|
|'E' / 'A'||F%|
Relief available from double taxation
If you're subject to tax on your Jersey income in Jersey and are non-resident you can also claim relief if you:
- are subject to tax on any of your Jersey income where you live; and
- are entitled to relief on your Jersey income where you live
Your Jersey income will be taxed at H% which is the higher of:
- F% calculated as above
- G% calculated as the amount that you are charged to tax in the country or territory outside Jersey (excluding any tax relief to which you're entitled there) divided by the total of the amount of your non Jersey and Jersey income notified to that country to work out your liability to tax
Tax exemption threshold
The relevant Jersey tax exemption thresholds that can apply for the purposes of calculating this relief are:
- standard single exemption threshold
- standard married exemption threshold
- second earners relief
Non-resident relief removed for the year's 2016 and 2017
If you are not resident in Jersey during the calendar year, you are chargeable to income tax at the standard rate of 20% on Jersey income, unless exempted.
The following Jersey income is exempt from Jersey tax if you are a non-resident:
- interest on Jersey bank accounts
- income from a pension payable under the Social Security (Jersey) Law 1974
- company distributions from profits or gains charged at 0%
- company dividends on preference shares from profits or gains charged at 0%
- income from a purchased life annuity
- interest paid by a company regarded as resident in Jersey
- the profits and earnings of the office of director of a company
- any royalty or other sum paid in respect of the user of a patent
Occupational and private pension scheme income can also be exempted from Jersey tax if there is a tax agreement between Jersey and the country you live in.
You will need to make a claim for this income to be exempted.
Tax and your pension income: living abroad
Non-resident relief for the years 2015 and earlier
You can claim non-resident relief, where a proportion of reliefs may be granted.
You need to complete a non-resident return and you must declare your gross worldwide income (before tax) for the calendar year. If you are married or in a civil partnership we need both your incomes. You are not charged on the income arising outside of Jersey, but it is required in order to work out the relief you are due.
To calculate non-resident relief, we follow these steps:
- we work out the tax on your worldwide income, giving any reliefs or allowances you would be entitled to receive if you were resident
- we work out the tax on your Jersey income without any allowances (Jersey income at 20p in every £1)
- we take your Jersey income over your worldwide income and multiply it by the result of step 1. This gives us the tax due with non-resident relief
- your tax will be the result of either step 2 or 3 (whichever is lower)