Living in Jersey as a 1(1)(k) and family

If an individual is granted residential qualifications as an approved wealthy immigrant (termed a "1(1)(k)" in the relevant legislation and referred to as such or simply as a "K") and moves to Jersey, some of his family may move with him. However, as the 1(1)(k) permit is not issued in favour of his family, what are their rights to reside in the island?

The housing consent permitting the K to purchase his new home will be in terms that will enable his immediate family to dwell with him as part of his household. Accordingly children, other relatives and staff can live in the principal household as part of the K’s family.

Not infrequently, the properties which merit K status will comprise a main house with smaller separate units of accommodation within the grounds. Frequently, such lesser subordinate units of accommodation impinging on the privacy of the main house will be made subject to ’if let’ conditions, which means that any unqualified person may live in such a unit provided they are not paying any form of valuable consideration for the accommodation. An ’if let’ condition will enable family including children and parents to occupy such ancillary accommodation as well as staff. In more recent times the Housing Minister has, in respect of larger mulit-unit 1(1)(k) residences, not even imposed an "if let" condition, thereby providing the 1(1)(k) with even greater flexibility as to how he arranges his household.

The right to purchase or lease residential accommodation in one’s own name is ordinarily acquired after a continuous period of 12 years residence in the island, although it is an established policy of the States of Jersey to reduce this period to 10 years and preferably by the end of 2009. Children of a K can, however, utilise their parents’ qualifications and acquire the right to lease or purchase once they are of age and have been ordinarily resident in the island for an aggregate period of at least 10 years. This period must have commenced before their 20th birthday. Periods spent away from the family home whilst engaged in full-time education, whether at boarding school or university, count towards such an aggregate period of 10 years.

If a K dies before completing 10 years continuous residence and is survived by a spouse who is not a ’K’ in his or her own right, the Housing Minister will almost invariably exercise a discretion to permit the spouse to remain in the island and, if necessary, purchase a smaller property despite the fact that the agreed level of taxation is no longer being paid. A similar understanding and supportive approach has also been extended to other cases of personal misfortune such as divorce or illness which has resulted in it being no longer possible to pay the agreed level of taxation.

The manner in which the K acquires his Jersey home might also affect the interests of his family. If the K acquires freehold title to the property in his sole name (he can acquire jointly with his spouse in such manner that she takes the property automatically on his death), he can leave that property to whoever he wishes including children who can inherit and live in such a property regardless of whether they have residential qualifications. It is not possible for a trust to acquire freehold property in Jersey, but a company held by a trust (or the K himself) can do so, but upon the K’s death, the children could not (because stricter Housing Law controls apply to company held property) reside in such property if they did not have residential qualifications.

Finally, the aspiring 1(1)(k) might be interested to know whether he can start a business when he moves to the island and acquire additional property in the island. The position with residential accommodation is somewhat restricted. Although it is all but an invariable rule that a 1(1)(k) cannot acquire additional residential homes in the island he can purchase investment properties such as commercial properties including properties comprising multiple dwelling units (such as lodging houses and blocks of flats) in the name of a company as opposed to his own name. Indeed other than for the fact that he cannot acquire additional single units of residential accommodation he will enjoy the same status as other residentially qualified islanders and can be employed and employ and set up his own business in the island.

For detailed advice concerning living in Jersey as a 1(1)(k) and family, please contact Peter Bertram.

The information and expressions of opinion contained in this article are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.