Couples marrying from next year to be taxed independently

Thursday 16 September 2021

People who marry or enter in civil partnership from next year will be taxed separated after the States overwhelmingly backed the first stage of independent taxation yesterday.

Couple who are married or in a civil partnership who arrive in Jersey from 1 January will also join the new system.

The rest of the population will move across at different stages, which requires more legislation to be passed, with the transition concluding no later than year of assessment 2027.

Yesterday’s vote also means that the 671 married couples and civil partnerships who elected for separate assessment for the 2020 tax year will have the option to take part in a pilot group and move to independent taxation for the 2022 tax year. 

These couples will receive a letter in the next few days asking them to register for the pilot group and confirm whether they wish to move to independent taxation for 2022, by Friday 29 October. 

The new system replaces a 93-year-old tax law.

The pilot group will also gather feedback on processes and customer support so that improvements can be made before independent tax becomes an option for all eligible couples in 2023.

All households will receive a leaflet from this Monday, which will have information about the new tax system. 

The Government say it will detail how islanders may be affected and how married couples’ and civil partners’ allowances will be replaced. 

Polish and Portuguese copies of the leaflet should be available online from the end of September, and from the Library, Citizens’ Advice and Parish Halls in early October.

Treasury Minister Deputy Susie Pinel said: “I’m delighted that States Members overwhelmingly supported my plans for the move to independent taxation.

“The approval of this first phase means we can go ahead and introduce independent taxation for some groups from next year. It also means that all couples in marriages and civil partnerships can choose next year to be independently taxed from January 2023, if they want to, before everyone is moved over by 2025.”

Pictured: Treasury Minister Susie Pinel: "No-one should be worse off by these changes".

She continued: “Further legislation will follow next year to set a date by which independent taxation would be mandatory for married couples and civil partnerships and introduce the new compensatory allowance. 

“All through this process I’ve made it clear that no-one should be made worse off by these changes and the new allowance will ensure that this is the case.”

Jersey’s current tax system, dating back to 1928, assesses married couples and civil partnerships as one unit.

Early last year, States Members voted nearly unanimously on “long overdue” changes to give both partners equal rights and responsibilities over their tax affairs.