Jersey Taxpayers On Higher Incomes To Feel The Pinch In Latest Assessments

by Robert Lee, Tax-News.com, London

12 November 2008

Jersey’s government has released details of changes in tax allowances, which are set to increase the tax bills of higher earners as part of the '20% means 20%' measures first implemented in 2007 as part of a five year programme.

In mid November, assessments will be sent out to those people who pay all or part of their income tax through the Income Tax Instalment Scheme. These notices will be amongst the first to reflect the new 20% means 20% legislation and taxpayers on higher incomes will see increases, due to the reduction in certain tax allowances and reliefs they can claim.

However, taxpayers who are in the lower to middle income bands, who are entitled to what is known as ‘Marginal Relief,’ will benefit from a 2.5% increase in the exemption limits for 2007. In addition, these people will still be entitled, in the calculation of Marginal Relief, to full interest tax relief on their mortgage and if applicable on a wife’s earned income allowance.

Comptroller of Income Tax, Malcolm Campbell said: "For many people, this will be the first time that they notice the changes that the new 20% means 20% legislation will introduce; it is important, therefore, that we provide clear and detailed advice".

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