1 Connection Factors

1.1 To what extent is domicile or habitual residence relevant in determining liability to taxation in your jurisdiction?

An individual's liability to taxation will be determined by reference to such individual's residence.

1.2 If domicile or habitual residence is relevant, how is it defined for taxation purposes?

An individual who is both resident and ordinarily resident in Jersey will be subject to Jersey income tax on his or her worldwide income, whereas an individual who is resident but not ordinarily resident in Jersey will only be taxed on his or her Jersey-source income and such overseas income as he or she remits to Jersey.

1.3 To what extent is residence relevant in determining liability to taxation in your jurisdiction?

See the response to question 1.2 above.

1.4 If residence is relevant, how is it defined for taxation purposes?

For taxation purposes, an individual will be considered resident and ordinarily resident in Jersey in a tax year (with a tax year in Jersey being a calendar year) if such individual:

  • is present in Jersey for 183 days (in aggregate) in the tax year in question; and either
  • maintains a place of abode in Jersey and stays (at least) one night in such place of abode in the tax year in question; or
  • does not maintain a place of abode in Jersey but visits
    Jersey on a habitual basis, i.e. spending, on average, more than 90 nights per year in Jersey over a four-year period. Where such habitual visits are made, the individual will become resident and ordinarily resident in Jersey from the start of the fifth year.

1.5 To what extent is nationality relevant in determining liability to taxation in your jurisdiction?

An individual's nationality is not relevant when determining his or her liability to taxation in Jersey

1.6 If nationality is relevant, how is it defined for taxation purposes?

See the response to question 1.5 above – nationality is not relevant.

1.7 What other connecting factors (if any) are relevant in determining a person's liability to tax in your jurisdiction?

See the response to question 1.4 above with regard to maintaining a place of abode in Jersey.

1.8 Have the definitions or requirements in relation to any connecting factors been amended to take account of involuntary presence in (or absence from) your jurisdiction as a result of the coronavirus pandemic?

Revenue Jersey has traditionally adopted a flexible approach in the event that an individual spends additional days in Jersey as a result of exceptional circumstances. There has been specific acknowledgment that exceptional circumstances could include time spent on the island due to quarantine, following government advice not to travel, being unable to leave due to the closure of borders or being asked by an employer to return to Jersey temporarily as a result of the coronavirus (COVID-19) pandemic. Evidence should be retained demonstrating these factors. This flexibility only applies to those individuals who are not normally resident or ordinarily resident in Jersey.

2 General Taxation Regime

2.1 What gift, estate or wealth taxes apply that are relevant to persons becoming established in your jurisdiction?

Jersey does not have gift taxes, an inheritance tax regime, nor is there a wealth tax.

Stamp duty is, however, charged on a deceased person's movable estate on the following basis:

  • where the deceased was domiciled outside of Jersey, only the deceased's Jersey situs assets will be subject to stamp duty; and
  • where the deceased was domiciled in Jersey, the whole of the deceased's estate will be subject to stamp duty

Stamp duty in respect of a deceased individual's movable estate is payable on a sliding scale, where the estate exceeds £10,000. The maximum stamp duty currently payable is £100,000.

With regard to a deceased individual's immovable estate, stamp duty will be payable on the registration of the deceased's will of immovable property (with the value of the immovable property to be ascertained by an estate agent). If, however, the deceased's property is left by will to his or her heirs at law, no valuation will be required (as no stamp duty will be payable) and only an administration charge of £80 will be payable.

2.2 How and to what extent are persons who become established in your jurisdiction liable to income and capital gains tax?

See the response to question 1.4 with regard to income tax. There is no capital gains tax in Jersey.

2.3 What other direct taxes (if any) apply to persons who become established in your jurisdiction?

There are none.

2.4 What indirect taxes (sales taxes/VAT and customs & excise duties) apply to persons becoming established in your jurisdiction?

Goods and Services Tax (GST) is charged at 5% on the majority of goods (including imports) and services supplied in Jersey for local use. GST is also payable in respect of:

  • goods worth, in aggregate, £240 or more bought either online or overseas and delivered to Jersey; and
  • goods purchased on a commercial ferry or flight worth in excess of £390 (or in excess of £270 where purchased on a private ferry or flight).

Local excise duties are also applied to such items as alcohol, tobacco products and fuel.

2.5 Are there any anti-avoidance taxation provisions that apply to the offshore arrangements of persons who have become established in your jurisdiction?

See the response to question 2.6 below.

2.6 Is there any general anti-avoidance or anti-abuse rule to counteract tax advantages?

Jersey has general anti-avoidance provisions that may be applied by the Comptroller of Taxes where a transaction (or a combination/series of transactions) is entered into for the purpose of avoiding or reducing income tax.

2.7 Are there any arrangements in place in your jurisdiction for the disclosure of aggressive tax planning schemes?

No, not in relation to local (i.e. Jersey) taxation. See the response to question 11.2 below in relation to arrangements involving international structures.

3 Pre-entry Tax Planning

3.1 In your jurisdiction, what pre-entry estate, gift and/ or wealth tax planning can be undertaken?

With a view to potentially avoiding légitime (see question 7.3 below for an explanation of légitime), a Jersey-domiciled individual may consider settling his or her movable assets into a trust. However, see the response to question 8.3 in relation to the risks associated with such a course of action.

3.2 In your jurisdiction, what pre-entry income and capital gains tax planning can be undertaken?

When considering any potential pre-entry tax planning (noting that there are no capital gains taxes in Jersey), the particular circumstances of each individual will need to be considered carefully, and specialist advice in respect of both the current tax regime applicable to the individual as well as that of Jersey should be taken to determine the most tax-efficient planning options available.

3.3 In your jurisdiction, can pre-entry planning be undertaken for any other taxes?

No, it cannot.

4 Taxation Issues on Inward Investment

4.1 What liabilities are there to tax on the acquisition, holding or disposal of, or receipt of income from investments made by a non-resident in your jurisdiction?

As mentioned in the response to question 3.2 above, there are no capital taxes in Jersey. Income tax will be payable on any income that is received by a Jersey taxpayer but not on non-residents.

4.2 What taxes are there on the importation of assets into your jurisdiction, including excise taxes?

See the response to question 2.4 above.

4.3 Are there any particular tax issues in relation to the purchase of residential properties by non-residents?

There are no property taxes apart from income tax on property income, rates levied by each parish and stamp duty.

Stamp duty is the principal point to consider in relation to property transactions. This is payable on the purchase or transfer of Jersey real estate, with rates ranging from 0% to 9% depending on value. Borrowing secured by a charge over Jersey real estate is also subject to stamp duty at rates of up to 0.5% of the amount borrowed. These rates are likely to change in the near future and the mortgage charges are due to be abolished.

Stamp duty discounts are available for first time buyers. Although tax is not a significant issue with property transactions, it is only possible to acquire and occupy Jersey residential property where the purchaser has the appropriate residential status.

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