About enveloped property transaction tax

​About enveloped property transaction tax

Enveloped property transaction tax (EPTT) is levied on the transfer of a 'significant interest' in immovable residential and commercial enveloped properties in Jersey.

Enveloped property is defined for these purposes as 'land in Jersey which is owned by a person who is not an individual'.

A significant interest in an entity is defined for these purposes as 'ownership or control of more than 50% of the interest in the entity'.

'Person' is used throughout to refer to both individuals and other legal entities.

EPTT is paid by the person who acquires a significant interest in the enveloped property.

An entity owning Jersey land may be obliged to make a statement following the transfer of a significant interest in the company.

Where a transaction has been subject to Land Transaction Tax it will not be subject to EPTT.

Enveloped Property Transactions Tax Law

Enveloped property transaction tax charges

EPTT is calculated on the market value of property which is defined as 'the unencumbered value at the date of the transaction of the enveloped property'. 

The rate of duty varies depending on the value of the transaction and the nature of the property.

Calculating the charge

EPTT is chargeable on freehold interests and contract leases.

You can work out how much EPTT is due on calculating enveloped property transaction tax

Documentation

To submit a statement and pay the tax due, you will need to fill out the online form. Upon completion, a copy of the information you provided will be emailed to you. This is your receipt as required under the law.

Further guidance on the information required can be found at completing the enveloped property transaction tax form

Subsequently, you may be required to provide evidence of how you have reached the valuation. You must retain the necessary documentation, including the receipt, for six years.

Paying enveloped property transaction tax

Once you have completed the EPTT online form, you will be automatically redirected to the payment page. Once the payment is made, a receipt will be emailed to you as proof of payment.

Alternatively, you can choose to pay by bank transfer. You must quote the reference number generated by the online form. The reference number will be in the format EPTT-123456789.

Due date

EPTT is due within 28 days of the date of the transaction. If the tax remains unpaid at this time, a surcharge of 10% of the tax due will be levied.

Errors, appeals and penalties

I have made an error when calculating the EPTT

An online calculator has been created to minimise the possibility of calculation errors. However, if an error does occur, you must bring it to the attention of Revenue Jersey without delay and provide your revised calculations. Any overpayment will be refunded. If you have underpaid you will need to pay the additional tax which may also be subject to a surcharge.

The Comptroller's powers

The Comptroller may require a person to deliver a statement and supporting information in respect of any transaction to which EPTT applies.

The Comptroller also has the power to make an assessment on a person if they believe the person has not complied with the EPTT Law or if they are of the opinion that the purpose of a transaction, or series of transactions, is to reduce or avoid EPTT.

I want to dispute a decision or appeal an assessment

If you wish to appeal an assessment, you should first contact Revenue Jersey, within 40 days, who will seek to resolve your appeal in the first instance.

If you remain aggrieved by any decision of, or assessment made by, the Comptroller under the EPTT Law, the Comptroller will forward your appeal to the Commissioners of Appeal. The Commissioners are an independent body and have the power to uphold or revoke an appeal or to vary any decision, or substitute their own direction as they see fit. 

Commissioners of Appeal

Penalties

Failure to deliver a statement (the online form) and pay the tax is an offence. It is also an offence to deliver false or misleading information, as is aiding or conspiring with someone to deliver false or misleading information. The penalties for such offences are severe and could lead to imprisonment and fines.

Advice regarding enveloped property transaction tax

Your lawyer or adviser will be able to help you with the amount of EPTT payable and assist with completing the forms.