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1240/5(9054)
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY THE DEPUTY OF ST. JOHN
ANSWER TO BE TABLED ON TUESDAY 17th NOVEMBER 2015
Question
Could the Minister provide details relating to changes made to the personal income tax system (in a table format) over the last ten years and set out whether revenue has been lost or gained through the actions taken?
Answer
The information provided below relates to the personal income tax system only. It does not include:
- changes to company income tax;
- changes made to other taxes, such as GST, stamp duty or impôts;
- administrative changes, such as changes in the powers given to the Comptroller of Taxes to administer the personal income tax system;
- changes to the tax rules applying to pension schemes and payments from pension schemes
The answer has been prepared on the basis that the loss' or gain' is from the perspective of the States' general revenues, rather than the taxpayer. In identifying whether there has been a loss' or gain' to general revenues this has been determined on a nominal basis rather than by comparison to any income or inflation forecast.
NOTE: some changes are revenue protection/neutral.
Budget | Change | Revenue impact |
2015[1] | Increase exemption thresholds | Loss |
| Double taxation provisions for marginal rate taxpayers | Loss |
| Cap mortgage interest tax relief | Gain |
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2014 | Increase exemption thresholds | Loss |
| Reduction in the marginal rate | Loss |
| Higher education child allowance extended for marginal rate taxpayers | Loss |
| Remove restriction to child allowance by reference to child's earned income | Loss |
| Increase age of entitlement to age enhanced exemption threshold | Gain |
| Transitional rules for High Value Residents | Protection/neutral |
| Reduce minimum charitable lump sum donation to £50 | Loss |
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2013 | Increase exemption thresholds | Loss |
| Removal of tax relief for life assurance premiums | Gain |
| Introduce personal service companies legislation | Protection |
| Introduce distribution' rules | Protection/neutral |
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2012 | Increase exemption thresholds | Loss |
| Increase child care tax relief | Loss |
| Reduce tax relief on pension contributions of higher earners | Gain |
| Reduce the level of tax free termination payments | Gain |
| Remove the deemed distribution rules (agreed outside of the Budget) | Deferral |
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2011 | Increase exemption thresholds | Loss |
| Amend deemed distribution rules | Protection/neutral |
| Amend the High Value Resident tax regime (agreed outside of the Budget) |
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2010 | Amend deemed distribution rules | Protection/neutral |
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2009 | Increase exemption thresholds | Loss |
| Extend child care tax relief to accredited nannies | Loss |
| Extend tax relief for pension contributions | Loss |
| Remove restriction of higher child allowance for income earned by the child after graduation | Loss |
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2008 | Increase income tax exemption thresholds | Loss |
| Increase child allowances | Loss |
| Introduce deemed distribution rules (agreed outside of the Budget) | Protection/neutral |
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2007 | Increase income tax exemption thresholds | Loss |
| Withdrawal of allowances through 20-means-20' (agreed outside of the Budget) | Gain |