The Treasury and Resources Minister has presented the draft budget 2017 on 18th October 2016. The main tax proposals are given below:
From previous record, unilateral tax relief has been granted by the Comptroller under a published concession. A statutory unilateral tax relief subject to 10% and 20% income tax will be introduced for companies and it will be effective from tax year 2017. The deadline for delivering an information return will be postponed to 31st December in the year following the relevant tax year due to harmonize it with the recently amended deadline for filing a corporate income tax return. Additionally, the Comptroller will be able to get detailed information from resident companies on profits chargeable to 0% tax rate. Specifically, with effect from tax year 2016, companies performing trading activities in Jersey will be needed to disclose the relevant profits on their tax return and submit a copy of their financial statements.
The income tax exemption of single person for the tax year 2017 will be GBP 14,550; for single with age 65+ years GBP 15,900; in case of married couple/civil partnership and married couple/civil partnership with 65+ age, the thresholds will be GBP 23,350 and GBP 26,100 respectively. Additionally, the tax relief for a pre-school age child will be increased up to GBP 16,000. Lastly, 30% of the pension fund will be paid out tax free.
Customs and Excise Duty
In accordance with the customs and excise import duties, the proposed duty rate on spirits will be increased by 4.96%, proposed duty on wine will be increased by 5.18%, proposed duty on beer/cider exceeding 4.9% strong will be increased by 4.76%, duty on beer/cider exceeding 2.8% standard will be increased by 5.44%, duty on tobacco products will be increased by 8.1% and duty on fuel will be increased by 4.23%.
Stamp duty and Land Transaction Tax (LTT)
According to the purchase of residential properties, the stamp duty rate and LTT rate will be increased to 8% on considerations exceeding GBP 3 million and to 9% on considerations exceeding GBP 6 million.
The Taxes Office will be able to get and apply financial account information on financial accounts held in Jersey by resident persons. Additionally, changes will be introduced aiming at improving collaboration and information allocating between the Taxes Office and the States Police.