On Friday 22 July Jersey government passed new rules designed to make it even more attractive for incoming 1(1)k residents. The purpose of the new rules is to make the Island more attractive for new 1(1)k residents, to encourage them to run businesses from the Island and hold income producing assets within the Island.
The new rules only apply to people receiving 1(1)k status from 22 July. At this point existing 1(1)k residents cannot take advantage of the new rules. This means that there will be 3 different regimes for taxing people holding 1(1)k status. There may be further news on this position later in the year.
The new rules are as follows:
- there will no longer be a distinction between the rates of tax charged on Jersey source income and non Jersey source income
- all Jersey property income will be subject to tax at 20%
- with regard to other income the first £625,000 will be subject to tax at 20% and the balance at 1%.
For further information in respect of either of the above please contact Peter Bertram.