Jersey Tax Regime Attracts High-Value Residents
by Jason Gorringe, Lowtax.net, London
29 December, 2016
A review of Jersey's tax regime for "high-value residents" found more people relocated to Jersey under the post-2011 scheme than in preceding years.
The review found that the updated scheme has encouraged more people to relocate to Jersey, together with their assets, and has led them to establish new businesses on the island. This in turn has increased tax revenue and brought economic benefits to Jersey.
The review team from Jersey's Taxes Office, supported by officials from across Jersey's Departments, concluded that the latest version of the Regime was more effective than previous regimes in attracting entrepreneurs to Jersey and improving tax revenues; and that HVRs were making a significant contribution to all aspects of Island life.
Treasury and Resources Minister, 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. As Treasury Minister it's important that everyone who has come to Jersey under the new regime has been able to meet their commitment to pay at least GBP125,000 (USD155,171) yearly in tax."
"In 2014 thirty-four High-Value Residents contributed approximately GBP4m (USD5m) of Jersey's personal income tax revenue. That's one percent 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 GBP50-70m (USD62-87m) in 2010."
The review recommends improvements to the HVR Regime, which Jersey's Council of Ministers has strongly endorsed, including the creation of a Minimum Annual Tax Charge to replace the current expected annual minimum income tax contribution. This would apply for new HVRs who relocate to Jersey from 2018.
The other recommended improvements are to set the Minimum Annual Tax Charge at GBP145,000 (USD180,012) for 2018; and maintaining the real value of the Minimum Annual Tax Charge through regular uprating, probably every five years.
See all of today's news