Interest Deductions for Landlords
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WQ.367/2025
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY R.S. KOVACS OF ST. SAVIOUR
QUESTION SUBMITTED ON MONDAY 6th OCTOBER 2025
ANSWER TO BE TABLED ON MONDAY 13th OCTOBER 2025
Question
"In relation to Interest Deductions for Landlords, as referenced on page 37 of the Proposed Budget (Government Plan) 2026-2029, will the Minister publish details of the 2025 public consultation carried out in relation to removing the ability to claim deductions for interest paid in respect of residential properties in Jersey that are rented out, and outline what actions, if any are being considered?"
Answer
A summary of the responses to the interest consultation is available on gov.je. Options included in the consultation were:
Option 1 – retain in full
Interest remains fully deductible against income from letting properties for all properties and taxpayers. There is no change to the current system.
Option 2 – remove entirely
Interest is no longer an allowable expense against rental income from residential properties from 2027. Interest would remain deductible from income from commercial properties.
Option 3 – restrict
A restriction is introduced so that only a portion of interest paid is deductible. This could take the form of a maximum monetary or percentage deduction.
Option 4 – phased basis
Either option 2 or option 3 could be done gradually rather than all at once.
As stated in the summary, the adopted proposition requires Ministers to consider the timing and cumulative impact on the housing market of removing interest relief.
Ministers will continue to discuss the matter, considering this wider impact alongside the responses to the consultation. Any proposed changes to legislation would be highlighted in Budget 2027.