Basis of assessment of Jersey rents etc.
The statutory basis of assessment is the profits and gains arising in the year of assessment ie 31 December. If the financial period end is other than 31 December then the profits and gains are time apportioned using two sets of financial statements.
Basis of assessment of property development profits from the year of assessment 2009
Prior to the year of assessment 2009 profits and gains arising from property development were taxed under Schedule D Case 1.
From the year of assessment 2009 profits and gains arising from property development are taxed under Schedule A. The statutory basis of assessment are the profits and gains arising in the financial year ending in the year of assessment.
Basis of assessment of lodging houses and furnished letting from the year of assessment 2009
Prior to the year of assessment 2009 profits and gains arising from lodging houses and furnished letting were taxed under Schedule D Cases 1 and 6 respectively. From the year of assessment 2009 these profits and gains are taxed under Schedule A.
The statutory basis of assessment is the profits and gains arising in the year of assessment ie 31 December. If the financial period end is other than 31 December then the profits and gains are time apportioned using two sets of financial statements.
Taxation of profits and gains
Following the introduction of zero / ten and shareholder taxation, the profits and gains arising from rents etc. and property development continue to be taxed on the company at the standard rate of tax of 20%.
Example of company with sole source of income comprising of Jersey rents etc.
| Financial year ended 30 March 2009 | Tax adjusted profit (rents) | £25,000 |
| Financial year ended 30 March 2010 | Tax adjusted profit (rents) | £30,000 |
| 1 January 2009 to 30 March 2009 | 3/12 months x £25,000 | £6,250 |
| 1 April 2009 to 31 December 2009 | 9/12 months x £30,000 | £22,500 |
| 2009 Schedule A assessment | £6,250 + £22,500 | £28,750 |
Example of company with sole source of income comprising of property development profits
| Financial year ended 30 March 2009 | Tax adjusted profit (property development profits) | £25,000 |
| Financial year ended 30 March 2010 | Tax adjusted profit (property development profits) | £30,000 |
| 2009 Schedule A assessment | | £25,000 |
| 2010 Schedule A assessment | | £30,000 |
Company in receipt of rents etc. and investment income from year of assessment 2009
The basis of assessment of the profits and gains arising from rents etc. is as described as above ie those arising in the year of assessment; 31 December.
The basis of assessment of the profits and gains arising from investments are those arising in the financial period ending in the year of assessment.
From the year of assessment 2009 the profits and gains arising from investments are subject to the zero ten and shareholder attribution provisions. In other words the profits and gains are taxed on the company at the corporate tax rate of 0% and are attributed to the Jersey resident shareholders in their respective shares.
Example of company in receipt of rents etc. and investment income
| Financial year ended 30 March 2009 | Tax adjusted profit (rents) | £25,000 | Relevant profit (bank interest) | £5,000 |
| Financial year ended 30 March 2010 | Tax adjusted profit (rents) | £30,000 | Relevant profit (bank interest) | £6,000 |
Schedule A assessment on company
| 1 January 2009 to 30 March 2009 | 3/12 months x £25,000 | £6,250 |
| 1 April 2009 to 31 December 2009 | 9/12 months x £30,000 | £22,500 |
| 2009 Schedule A assessment | £6,250 + £22,500 | £28,750 |
Bank interest subject to attribution to Jersey resident shareholders
| Year ended 30 March 2009 | £5,000 |
| Year ended 30 March 2010 | £6,000 |
Company in receipt of property development profits and investment income from the year of assessment 2009
The basis of assessment of the profits and gains arising from property development profits is as described as above ie those arising in the financial year ending in the year of assessment. The basis of assessment of the profits and gains arising from investments are those arising in the financial period ending in the year of assessment.
From the year of assessment 2009 the profits and gains arising from investments are subject to the zero / ten and shareholder attribution provisions. In other words the profits and gains are taxed on the company at the corporate tax rate of 0% and are attributed to the Jersey resident shareholders in their respective shares.
Example of company in receipt of property development profits and investment income
| Financial year ended 30 March 2009 | Tax adjusted profit (property development profits) | £25,000 | Relevant profit (bank interest) | £5,000 |
| Financial year ended 30 March 2010 | Tax adjusted profit (property development profits) | £30,000 | Relevant profit (bank interest) | £6,000 |
Schedule A assessment on company
| Year ended 30 March 2009 | £25,000 |
| Year ended 30 March 2010 | £30,000 |
Bank interest subject to attribution to Jersey resident shareholders
| Year ended 30 March 2009 | £5,000 |
| Year ended 30 March 2010 | £6,000 |
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