Jersey To Fund Long-Term Care Scheme With New Tax
by Jason Gorringe, Lowtax.net, London
16 December, 2013
Jersey residents will be subject to a new tax from January 2015 to fund the island's long-term care (LTC) scheme.
Starting in 2015 individuals in Jersey who pay income tax will have to pay a maximum contribution of 0.5 percent of taxable earnings. The rate will rise to one percent in 2016.
Taxpayer contributions will be paid into the LTC fund, along with an annual contribution from the States, and the fund will be used to provide means-tested assistance to islanders.
The government hopes this new scheme will mean that Jersey residents no longer have to sell property to pay the high costs of residential and home care. Under the scheme, residents will pay a maximum of GBP50,000 for care costs, and any costs exceeding this amount will be covered by the LTC benefit.
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