Jersey Budget 2019 Proposals
The Budget will be debated on 4 December 2018. We have summarised the key measures from the proposals below.
The changes are proposed to be effective from Year of Assessment 2019.
Personal Exemptions & Allowances
- Personal tax allowance for individuals to be increased to £15,400
- Personal tax allowance for married couples to be increased to £24,800
- Second earners allowance to be increased to £6,000
- Removal of the Higher Child Allowance for parents with children aged 17 or over in full-time higher education
High Value Residents
- Inclusion of Jersey rental income received by HVRs within their minimum income tax contribution. Currently this is taxed at 20% in addition to their minimum contribution.
- Low worldwide income tax relief: if a non-resident’s worldwide income is less than the Jersey personal tax allowance, they can make a claim for relief which will reduce their Jersey tax bill to nil. Currently non-residents do not get a personal allowance in Jersey.
- Reduced rate relief: if a non-resident’s worldwide income is more than the Jersey personal tax allowance, they can make a claim for relief from any foreign tax paid on their other worldwide income to reduce their effective Jersey tax rate to below 20%. This is designed to prevent double taxation however the reduced rate will only apply to low-middle earners as it is capped.
- Removal of the ability to access more than 30% of your pension tax free where your pension value is below £35,000.
Stamp Duty Land Tax
- First time buyer’s relief: increase of the nil rate band of SDLT to £350,000, the 1% band to £450,000, and tapered relief to £500,000.
- Elimination of SDLT on mortgages for properties up to £600,000, and a reduced rate for properties between £600,000 to £700,000.
- These reliefs will be funded by a 0.5% increase on SDLT to properties over £500,000.
- The personal tax return deadline to be changed to 31 May following Year of Assessment (31 July if you have an agent).
- Late filing penalty to be increased to £300 from £250.
- Payments on account for companies is to be changed to 31 May and 30 November following the Year of Assessment.
- Payments on account for “large” companies is to be changed to 31 March and 30 September following the Year of Assessment. Large is defined as a tax liability greater than £500,000 in the preceding two tax years.
- For companies, the return deadline will remain at 31 December however the deadline for submitting the company accounts will be 30 November.
- All companies will be required to submit accounts to the Taxes Office from YOA 2019 onwards.
To discuss the implications of any of these proposals please contact Hannah Roynon-Jones, Tax Manager.
For a more detailed look at the proposed Jersey 2019 Budget it is available online HERE