Jersey Adopts HNWI Tax Changes

by Jason Gorringe, Tax-News.com, London

27 July 2011

The States of Jersey has approved an amendment to the Income Tax (Jersey) Law and Regulations to encourage high-net-worth individuals to invest in Jersey.

The revised tax regime has been introduced for individuals who are granted housing consent under Regulation 1(1)(k) of the Housing (General Provisions) (Jersey) Regulations 1970. The changes form part of a package of measures intended to increase the benefits to Jersey of the 1(1)(k) regime.

Under the new tax regime, 1(1)(k) residents will be taxed at 20% on the first GBP625,000 of their income and 1% on all income thereafter. The new position also removes the distinction between income that has been earned within Jersey and income that has been earned outside Jersey.

The Minister for Treasury and Resources, Philip Ozouf, said the decision to amend the law sent an important message that the island welcomed new high-net-worth residents:

“The changes are designed to encourage more wealthy individuals to move to Jersey, particularly those who wish to bring a business to the island. This will have the effect of creating employment and enhancing economic activity in many sectors.”

“This change sends a clear signal that the States is committed to promoting investment in Jersey, to encouraging growth in employment and to diversifying the economy.”

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