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JERSEY INCOME TAX
"THEHARDESTTHINGINTHE
WORLDTOUNDERSTANDIS
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ly
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ard. Priortothe inpartsettlementforyourprior
JOHN RIVA
Head of Tax, Jersey
tax was introduced
little
in
had changed since income
worry about issues such
1928.
as
We didn’t have to 3.2
year
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payment surcharge or
benefits in kind, late Individuals
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with
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relativelyhighincomewillno
least
entitled
ten month
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s
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reliefon
earn
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est
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paid;wehadat lessallowable
beentitled
pension
toallowances. Theirincome,
paying our tax; and we were entitled
income and related expenses, will
cont
be taxed
ributions
at
andwork
generous allowances.
to many allowances
so
Indeed our allowances were Enhanced
will
avo
be
20%. The
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phasedoutover3years.
any
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ous than at one stage 40% of us didn’t pay inf
idance provisions and new
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nt may be introduced for
the Jersey income tax law. Indeed, since 2000, our
to transacti
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outlin
2003
edbelow. that exemptions to the tax ar
seek to ensure
1.1
absolute
e kept to an
Pr
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assessment
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for
t
come
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was tr
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minimu
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eated
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sions
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roduction of a 0%/10%
retirement
and freedom in investment l
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viduals
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educe their tax bills by
drawdown
ed to an approved (wheretheincome
oducing
willbetaxed
assetsincompanies
p
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atazerorate).
pleases.
ensioner
contract
to draw
which
on th
basically
ose fun
allows
ds as
the
he asthatoftheindividual
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2.1
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erat
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sey
Jersey
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companycars,
ion, such as This process will
2.2 Late
issubjecttotax. mp
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tax
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filing
of £200
feeforincometaxreturns fromthereader’s
antly
returnsarenot
will now be imposed if tax tax payable
pointofview,increasethelevelof
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oved
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ly
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Jersey
ly
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2.3 Restrictionofinterestr
your
elief
return. their social and political
e able to fund
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ststrive
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are the
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relief
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all interest relief was tax syst
toensurethatthe
Someone
em doesn’t become overly complicated.
3
r
2006
estri
be given only in
year
ctedcases. pr
3.1 TheInco
ofassessment followed
oposals
needs to take a high level view of all the
and
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r
r
e
ef
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acohesiv
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mer
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This
to bits of the law that don
ely bolted on
January
is
2006,
Jersey’
meTax
tax
s
Inst
version
almentSystem(‘ITIS’)
will be deduct
of PAYE.
ed from
From
your
1 ther
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e
of
is
the
adanger
hardest
that
things
income
’t
tounderst
tax
work
will
well. Otherwise
and
indeedbecome
n
20/20 eighteen
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