More tax please, we're Jersey!

Wednesday 14 December 2016

Wealthy residents who move to Jersey will be asked to pay at least £20,000 more in tax each year from 2018 – an increase of 16%.

It’s one of the recommendations in a new review of the Island’s tax regime which attracts so called “high value” residents to Jersey, and will take effect from 2018.

The review has been conducted by the Taxes Office, and overall it has concluded that the Treasury’s new system for attracting wealthy residents is effective.

It also praises the contribution made by those residents to Island life. However, it lists a number of changes which need to be made such as: 

• bringing in a Minimum Annual Tax Charge to replace the current expected annual minimum income tax contribution, for new “High Value Residents” (HVR) who move to Jersey in, or after, 2018.
• Setting the Minimum Annual Tax Charge at £145,000 for 2018, rather than the current £125,000.
• Maintaining the real value of the Minimum Annual Tax Charge through regular increases, probably every five years.

Treasury Minister, Senator Alan Maclean said “The really positive news is that the new HVR Regime has brought us a much broader range of people who have not just brought their wealth to Jersey but their expertise and entrepreneurship.

“In 2014 thirty-four High Value Residents contributed approximately £4 million of Jersey’s personal income tax revenue. That’s 1% of all the personal income tax paid. This is a significant contribution to the funds that help us provide public services for all islanders. An external review of the tax regime also estimated the wider economic benefits of this tax regime as at least £50-£70 million in 2010.”

The Chief Minister, Senator Ian Gorst, added “Our most active wealthy immigrants have touched the lives of many of our Islanders, employing people in their enterprises and contributing to our charities, churches, societies and sporting associations. More HVRs are now associated with new-business set-ups and they continue to give time, expertise and money to Island life.”