Jersey's overseas pension tax branded as “immoral”

Friday 08 December 2017

A former BBC presenter who worked in Jersey for 20 years before retiring abroad has blasted the States over their overseas tax policy, which he says victimises a group of people who can't fight back.

Ex-BBC Radio Jersey breakfast show host, Roger Bara, is demanding answers from the Chief Minister over why he should have to pay tax at the top rate of 20% on his pension without any allowances simply because he chose to retire abroad - where he doesn't use any of the local taxpayer-funded services.

While he says that he is happy to pay tax, he thinks that it’s “immoral” that he and his wife, Chris, should have to pay the highest possible amount. His situation means that, should he get ill while visiting his family in Jersey, he wouldn’t be entitled to free use of the hospital.

His story follows that of two Portugal-based islanders, who want to remain anonymous due to an upcoming appeal - say the current tax system loses them up to £4,000 a year, simply because they decided not to retire in Jersey.

A recent Freedom of Information (FOI) request revealed that over 13,000 islanders in receipt of a pension no longer lived in Jersey - more than 40% of the overall number of people receiving an island pension.

Mr and Mrs Bara settled in the Turkish Republic of Northern Cyprus (TRNC) in 2012 after Mr Bara ended a career of more than two decades on the island’s airwaves.

Pictured: Mr Bara, a former BBC presenter, called the government's Budget decision "immoral" and "unfair."

“Like many people, the reason was we would’ve had to downsize in Jersey because of the cost of living and because of the bad weather in Jersey. When you get to our age, you never know how long it’s going to last so you go for the sunshine, you go for the quality of life, and you go for the cheapness,” he told Express.

Their first three years there saw the pair in a “ridiculous” situation where the couple would pay tax on their pensions but later, due to their allowances, receive that amount back later in a rebate.

But then in 2016, things changed. The States Assembly passed a Budget that removed all allowances for overseas pensioners, choosing to tax them all at the top rate of 20%. Treasury said at the time that it should generate incomes for the island of around £500,000.

Mr Bara explained that, although the pair were warned by the Taxes Office, they were still shocked by the move, which he felt had been taken against a part of the population that couldn’t fairly represent themselves.

Pictured: Roger Bara says retirees should not be discriminated against just because they chose to leave the island.

“You have no idea when you live away from the island - and to be fair, although I follow things back in Jersey because I was in the media and it does interest me, I failed to spot this when it happened.

“I think it’s immoral what they’re doing. Totally and utterly immoral. Whilst I’m happy to pay tax - and I am, the island’s got to survive - I think other decisions that the government have made that have made Jersey fairly hard up by recent standards, they’re trying to get a little bit back from the few expats.

“You’re penalising the most vulnerable members that gave your island decades of service. And I did. Me and my wife worked our socks off in Jersey like we all do - we’re no different to anyone else. But we’re vulnerable, there’s nothing we can do, we can’t fight back. I just think it’s totally outrageous.”

While he said that the couple were fortunate enough to be able to keep afloat with the new arrangement, he expressed concerns that other islanders abroad could be “ruined” by such a move.

“If you are away from Jersey because of the financial implications of staying in Jersey, these kind of decisions that the government have made can be life-changing when you live abroad.”

He contacted the Chief Minister and Deputy Comptroller for Taxes Paul Eastwood in April, to express his “deep horror and regret” about the “patently unfair” policy change, and demand that they reconsider.

He wrote: “After contributing extensively to Jersey society for over thirty years, we [Roger and his wife] were both medically retired, in our fifties. Having to wait until we were 49 to earn our housing qualifications, we were subsequently unable to pay off our mortgage and could not afford to stay on the island. We have found somewhere to live that is much cheaper."

The letter went without a response for eight months - until yesterday.

Prompted by an article in Express this week, he chased the pair on the matter and Mr Eastwood replied. He replied that the tax change had been done to “create a more sustainable future for the island” and that the island hadn’t struck a double taxation agreement with the TRNC. He added that many foreign authorities also provide reliefs under their domestic tax systems.

But Mr Bara, a patron of Jersey Sports Association for the Disabled, felt that this did not explain the principle behind targeting the “vulnerable” category of islanders abroad.

He now wants to hear from the Chief Minister himself, who has so far remained silent.

“If the government could sort their finances out, they wouldn’t have to pick the poor old retirees that would only give them back such a small amount that they wouldn’t even notice it at the end of the financial year.”

If no answers are forthcoming, he is now considering taking up legal action.

“I’m not after my money back. My main thing at this stage is I’ve got to pay tax, give me something in return because I think I deserve it and I think you are morally obliged to offer it.”