Jersey's 2018 Budget Now Law
by Jason Gorringe, Lowtax.net, London
16 May, 2018
Jersey's 2018 Budget provisions have been enacted, in Finance (2018 Budget) (Jersey) Law 2018.
The law imposes a 20 percent income tax on retailers, which is phased in on profits in excess of GBP500,000 (USD674,681) a year, with the full 20 percent rate payable on profits of GBP750,000 or more.
The definition of a financial services company is widened, moving more companies into the 10 percent tax rate, and fees on international service entities are increased with more companies required to pay them.
The tax-free income allowance for working-age people rises by 2.5 percent, to GBP14,950, and the second earner's allowance increases by GBP850 to GBP5,850, eliminating the disparity in allowances between married and cohabiting couples, where both partners are earning.
The new law also raises the minimum annual tax payable by new high-value residents from GBP125,000 to GBP145,000, with the minimum tax contribution to be reviewed every five years from 2023.
The above changes take effect from January 1, 2018.
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