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Ministers are considering changing the rules for super-rich immigrants that relocate to Jersey.
The island has been welcoming - and encouraging - applications from high-net-worth individuals to come and live in the island for more than 50 years.
But the rules for them to receive 'entitled' status have changed a great deal since the scheme began. In 1972, the minimum tax requirement was £3,000. Today, it is nearly 50 times that amount, standing at £145,000.
Under the rules, they must pay 20% tax on their first £725,000 of income and 1% on all income above this, and purchase a house worth more than £2.5m or an apartment valued in excess of £1.25m.
The matter of high-value residents and their local contribution was a hot topic during the election period, with three parties and many candidates setting out policies to tighten up the rules.
It now appears that the issue is firmly on the new Government’s agenda.
The Chief Minister confirmed last week that her newly established ‘Population and Skills Group’ – a team of Ministers tasked with “a central political forum for matters relating to population policy, the employment market and the skills needs of the island” – had been specifically tasked with “reviewing the criteria”.
Meanwhile, Treasury Minister Deputy Ian Gorst went a step further during a grilling by Scrutiny last week when he suggested that there could be “changes in the Government Plan” – due to be unveiled this week – allowing for so-called high-value residents’ (HVRs) minimum tax contribution to rise.
A recent written question from Deputy Max Andrews to the Treasury Minister revealed that the income tax generated from HVRs’ income chargeable at 1% was £134,000 in 2018, rising to £296,000 in 2019 and £570,000 in 2020.
While HVRs’ tax liabilities will vary from year to year, it’s understood that the rise is linked to increasing numbers of HVRs paying larger amounts of income tax under the later regimes.
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