Lowtax Network

Back To Top

Jersey Issues Draft Regulations On Income Tax Regime Changes

by Jason Gorringe, Lowtax.net, London
15 February, 2021

The Government of Jersey has issued draft Regulations that set out how former Prior Year Basis (PYB) taxpayers may pay their 2019 tax bills.

Legislation was passed in November 2020 to move all taxpayers to the Current Year Basis (CYB) for paying income tax from 2020. Under the PYB system, taxpayers paid their tax in arrears. PYB taxpayers had their 2019 tax bill "frozen" for payment at a later date, with payments made by PYB taxpayers to settle their 2019 tax bills used to pay their 2020 tax bill instead.

On February 10, 2021, Treasury Minister Susie Pinel lodged draft Regulations and supporting documents outlining how former PYB taxpayers can pay their 2019 tax bill. The Regulations offer two options for payment.

Option one would allow taxpayers to pay their 2019 bill in instalments. They would be able to pay from 2022 and would have to start making payments by 2025. The bill must be paid by 2042. Option two would permit taxpayers to commit to paying the 2019 bill within 12 months of reaching States Pension Age, using existing financial arrangements or assets.

Former PYB taxpayers would in the future need to register for one of the two options by September 30, 2024. Further information will be made available by early 2022.

If they wish, taxpayers could also choose to pay their 2019 bill in full at any point before September 30, 2024. The Regulations also allow taxpayers to apply for a payment holiday of up to a year, in the event they experience a period of financial difficulty.

The Regulations will be debated by the States Assembly in March.


See all of today's news


 

News Archive

Event Listings

Listings for the leading worldwide conferences and events in accounting, investment, banking and finance, transfer pricing, corporate taxation and more...
See Event Listings »