Income tax returns-allowance for rates and insurance (FOI)

​​Request

Jersey personal income tax returns allow those with rental income to claim an allowance for ‘rates and insurance’. Could you please provide for the year 2014:
- The total number of such claims
- The total combined value of ‘rates and insurance’ claimed;

Response

The amount of parochial rates and insurance paid by a landlord are allowable deductions against Jersey rental income under the provisions of article 52(2) (b) of the Income Tax (Jersey) Law 1961. 

Whilst details of deductions claimed are included on tax returns, only the net rental income declared (after all allowable expenditure) is recorded on the taxes office IT systems. 

Accordingly, it is not possible to answer this question accurately.

Given the above and taking each part of the question separately:

1. The total number of personal taxpayers who were assessed to tax on Jersey rental income less allowable expenses for the year of assessment 2014 was 4,945 (information extracted from the taxes office system on 7 December 2015). 

Not all of these taxpayers will necessarily have claimed parish rates and insurance against the gross rental income received.

NB: taxpayers whose Jersey rental income less allowable expenses resulted in nil income or a loss are not included in the above total.

2. For the reasons outlined, it is not possible to provide the combined value of "rates and insurance" claimed as requested.

A similar question was asked in the States Assembly by Deputy Sam Mezec and the answer was tabled on 19 January 2016. 

The full question and answer can be viewed on the States Assembly website below. 

States Assembly website