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WQ.381/2020
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY R.J. WARD OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 20th OCTOBER 2020
Question
Will the Minister state, with regards to High Value Residents (H.V.R.) –
- what percentage of H.V.R.s are paying the £145,000 initial tax rate;
- what percentage, if any, are on legacy payment levels, with a breakdown of the amounts paid and the percentage paying each such amount; and
- if there are any residents on legacy levels, whether that is due to a legal right to stay on those levels or whether it is the result of a policy decision?
Answer
Taxpayer data relating to 2019 will not be available, in full, until after the first quarter of 2021. This answer therefore includes data as at 31 December 2018.
It is assumed that the reference to High Value Residents' (HVRs') relates to those individuals who come to Jersey by obtaining "entitled status" under Regulation 2(1)(e) of the Control of Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013 (and predecessor legislation) and thereby have access to preferential tax rates above a prescribed limit.
- The percentage of taxpayers subject to the latest version of the HVR (tax) Regime with a prescribed limit of £145,000 is 5.8%
- The previous versions of the Regime in force with lower prescribed limits were:
• Version 1: £100,000 to 29 December, 2010 (with lower rates of 10% and 1%)
• Version 2: £125,000 to 30 June, 2011 (with lower rates of 10% and 1%)
• Version 3: £125,000 to 31December, 2017 (with lower rates of 1%)
The percentage of HVRs to which each version of the regime applies are detailed in the table below:
HVR Regime Version No. | Percentage |
1 | 18.7% |
2 | 2.6% |
3 | 72.9% |
- Article 135A of the Income Tax (Jersey) Law 1961 requires HVRs to be to be taxed under the version of the Regime which was in force at the time they acquired HVR status under the relevant social law (currently the Control of Housing and Work Regulations 2013) - unless an HVR exercises their right under Article 135A to apply to join the latest version of the scheme.