Description of Household | Household income | Tax payable in 2005 | Tax payable in 2012 (New proposals) | Tax increase or decrease (New proposals) | Tax payable in 2012 (Old proposals) | Tax decrease. (Old proposals versus new proposals) |
Single, no children, no mortgage | £12,000 | £265 | £35 | -£230 | £265 | £230 |
Single, no children, no mortgage | £20,000 | £2,425 | £2,195 | -£230 | £2,425 | £230 |
Single, no children, no mortgage | £30,000 | £4,800 | £4,895 | £95 | £5,125 | £230 |
Single, no children, mortgage £120,000 | £30,000 | £3,407 | £3,178 | -£230 | £3,407 | £230 |
Single, 1 child at school, mortgage £120,000 | £30,000 | £1,517 | £1,288 | -£230 | £1,517 | £230 |
Single, 1 child at school, no mortgage | £30,000 | £3,235 | £3,005 | -£230 | £3,235 | £230 |
Single, no children, mortgage £120,000 | £40,000 | £5,528 | £5,878 | £350 | £6,107 | £230 |
Single, 1 child at school, mortgage £120,000 | £40,000 | £4,128 | £3,988 | -£140 | £4,217 | £230 |
Single, 1 child at school, no mortgage | £40,000 | £5,400 | £5,705 | £305 | £5,935 | £230 |
Single, no children, mortgage £200,000 | £50,000 | £6,680 | £7,433 | £753 | £7,663 | £230 |
Single, 1 child at school, mortgage £200,000 | £50,000 | £5,280 | £5,543 | £263 | £5,773 | £230 |
Single, 1 child at school, no mortgage | £50,000 | £7,400 | £8,405 | £1,005 | £8,635 | £230 |
Single, no children, no mortgage | £60,000 | £10,800 | £12,000 | £1,200 | £12,000 | £0 |
Single, no children, mortgage £240,000 | £60,000 | £8,256 | £9,561 | £1,305 | £9,790 | £230 |
Single, 1 child at school, mortgage £240,000 | £60,000 | £6,856 | £7,671 | £815 | £7,900 | £230 |
Single, 1 child at school, no mortgage | £60,000 | £9,400 | £10,600 | £1,200 | £11,335 | £735 |
Single, no children, no mortgage | £70,000 | £12,800 | £14,000 | £1,200 | £14,000 | £0 |
Single, no children, mortgage £240,000 | £70,000 | £10,256 | £12,261 | £2,005 | £12,490 | £230 |
Single, 1 child at school, mortgage £240,000 | £70,000 | £8,856 | £10,371 | £1,515 | £10,600 | £230 |
Single, 1 child at school, no mortgage | £70,000 | £11,400 | £12,600 | £1,200 | £14,000 | £1,400 |
Single, no children, no mortgage | £80,000 | £14,800 | £16,000 | £1,200 | £16,000 | £0 |
Single, no children, mortgage £240,000 | £80,000 | £12,256 | £14,961 | £2,705 | £15,190 | £230 |
Single, 1 child at school, mortgage £240,000 | £80,000 | £10,856 | £13,071 | £2,215 | £13,300 | £230 |
Single, 1 child at school, no mortgage | £80,000 | £13,400 | £14,600 | £1,200 | £16,000 | £1,400 |
Single, no children, no mortgage | £90,000 | £16,800 | £18,000 | £1,200 | £18,000 | £0 |
Single, no children, mortgage £240,000 | £90,000 | £14,256 | £17,661 | £3,405 | £17,890 | £230 |
Single, 1 child at school, mortgage £240,000 | £90,000 | £12,856 | £15,771 | £2,915 | £16,000 | £230 |
Single, 1 child at school, no mortgage | £90,000 | £15,400 | £16,600 | £1,200 | £18,000 | £1,400 |
Single, no children, no mortgage | £100,000 | £18,800 | £20,000 | £1,200 | £20,000 | £0 |
Single, no children, mortgage £240,000 | £100,000 | £16,256 | £20,000 | £3,744 | £20,000 | £0 |
Single, 1 child at school, mortgage £240,000 | £100,000 | £14,856 | £18,471 | £3,615 | £18,700 | £230 |
Single, 1 child at school, no mortgage | £100,000 | £17,400 | £18,600 | £1,200 | £20,000 | £1,400 |
Single, no children, no mortgage | £110,000 | £20,800 | £22,000 | £1,200 | £22,000 | £0 |
Single, no children, mortgage £240,000 | £110,000 | £18,256 | £22,000 | £3,744 | £22,000 | £0 |
Single, 1 child at school, mortgage £240,000 | £110,000 | £16,856 | £20,600 | £3,744 | £21,400 | £800 |
Single, 1 child at school, no mortgage | £110,000 | £19,400 | £20,600 | £1,200 | £22,000 | £1,400 |
Single, no children, mortgage £300,000 | £115,000 | £18,620 | £23,000 | £4,380 | £23,000 | £0 |
Single, no children, no mortgage | £115,000 | £21,800 | £23,000 | £1,200 | £23,000 | £0 |
Single, no children, no mortgage | £120,000 | £22,800 | £24,000 | £1,200 | £24,000 | £0 |
Single, no children, mortgage £240,000 | £120,000 | £20,256 | £24,000 | £3,744 | £24,000 | £0 |
Single, 1 child at school, mortgage £240,000 | £120,000 | £18,856 | £22,600 | £3,744 | £24,000 | £1,400 |
Single, 1 child at school, no mortgage | £120,000 | £21,400 | £22,600 | £1,200 | £24,000 | £1,400 |
Single, no children, no mortgage | £130,000 | £24,800 | £26,000 | £1,200 | £26,000 | £0 |
Single, no children, mortgage £240,000 | £130,000 | £22,256 | £26,000 | £3,744 | £26,000 | £0 |
Single, 1 child at school, mortgage £240,000 | £130,000 | £20,856 | £24,600 | £3,744 | £26,000 | £1,400 |
Single, 1 child at school, no mortgage | £130,000 | £23,400 | £24,600 | £1,200 | £26,000 | £1,400 |
Married, wife working, no children, no mortgage | £20,000 | £0 | £0 | £0 | £0 | £0 |
Married, wife not working, no children, no mortgage | £20,000 | £626 | £259 | -£367 | £626 | £367 |
Married, wife working, no children, no mortgage | £30,000 | £2,111 | £1,744 | -£367 | £2,111 | £367 |
Married, wife not working, no children, no mortgage | £30,000 | £3,326 | £2,959 | -£367 | £3,326 | £367 |
Married, wife not working, 1 child age 3, no mortgage | £30,000 | £2,651 | £2,284 | -£367 | £2,651 | £367 |
Married, wife working, no children, no mortgage | £40,000 | £4,811 | £4,444 | -£367 | £4,811 | £367 |
Married, wife not working, no children, no mortgage | £40,000 | £6,026 | £5,659 | -£367 | £6,026 | £367 |
Married, wife not working, 1 child age 3, no mortgage | £40,000 | £5,351 | £4,984 | -£367 | £5,351 | £367 |
Married, wife not working, 1 child age 3, mortgage £160,000 | £40,000 | £3,062 | £2,695 | -£367 | £3,062 | £367 |
Married, wife working, no children, no mortgage | £50,000 | £7,380 | £7,144 | -£236 | £7,511 | £367 |
Married, wife working, no children, mortgage £200,000 | £50,000 | £4,649 | £4,282 | -£367 | £4,649 | £367 |
Married, wife working, 2 children at school, mortgage £200,000 | £50,000 | £3,299 | £2,932 | -£367 | £3,299 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £200,000 | £50,000 | £2,624 | £2,257 | -£367 | £2,624 | £367 |
Married, wife working, 2 children at school, no mortgage | £50,000 | £6,161 | £5,794 | -£367 | £6,161 | £367 |
Married, wife working, no children, no mortgage | £60,000 | £9,380 | £9,844 | £464 | £10,211 | £367 |
Married, wife working, no children, mortgage £240,000 | £60,000 | £6,777 | £6,410 | -£367 | £6,777 | £367 |
Married, wife working, 2 children at school, mortgage £240,000 | £60,000 | £5,427 | £5,060 | -£367 | £5,427 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £240,000 | £60,000 | £4,752 | £4,385 | -£367 | £4,752 | £367 |
Married, wife working, 2 children at school, no mortgage | £60,000 | £8,380 | £8,494 | £114 | £8,861 | £367 |
Married, wife working, no children, no mortgage | £70,000 | £11,380 | £12,544 | £1,164 | £12,911 | £367 |
Married, wife working, no children, mortgage £240,000 | £70,000 | £8,836 | £9,110 | £274 | £9,477 | £367 |
Married, wife working, 2 children at school, mortgage £240,000 | £70,000 | £7,836 | £7,760 | -£76 | £8,127 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £240,000 | £70,000 | £7,336 | £7,085 | -£251 | £7,452 | £367 |
Married, wife working, 2 children at school, no mortgage | £70,000 | £10,380 | £11,194 | £814 | £11,561 | £367 |
Married, wife working, no children, no mortgage | £80,000 | £13,380 | £15,244 | £1,864 | £15,611 | £367 |
Married, wife working, no children, mortgage £300,000 | £80,000 | £10,200 | £10,951 | £751 | £11,318 | £367 |
Married, wife working, 2 children at school, mortgage £300,000 | £80,000 | £9,200 | £9,601 | £401 | £9,968 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £300,000 | £80,000 | £8,700 | £8,926 | £226 | £9,293 | £367 |
Married, wife working, 2 children at school, no mortgage | £80,000 | £12,380 | £13,894 | £1,514 | £14,261 | £367 |
Married, wife working, no children, no mortgage | £85,000 | £14,380 | £16,594 | £2,214 | £16,961 | £367 |
Married, wife not working, 2 children at school, no mortgage | £85,000 | £14,280 | £16,000 | £1,720 | £16,826 | £826 |
Married, wife working, 2 children at school, no mortgage | £85,000 | £13,380 | £15,244 | £1,864 | £15,611 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £340,000 (capped at £300,000) | £85,000 | £9,700 | £10,276 | £576 | £10,643 | £367 |
Married, wife working, no children, mortgage £340,000 (capped at £300,000) | £85,000 | £11,200 | £12,301 | £1,101 | £12,668 | £367 |
Married, wife working, 2 children at school, mortgage £340,000 (capped at £300,000) | £85,000 | £10,200 | £10,951 | £751 | £11,318 | £367 |
Married, wife working, no children, no mortgage | £90,000 | £15,380 | £17,944 | £2,564 | £18,000 | £56 |
Married, wife working, no children, mortgage £360,000 (capped at £300,000) | £90,000 | £12,200 | £13,651 | £1,451 | £14,018 | £367 |
Married, wife working, 2 children at school, mortgage £360,000 (capped at £300,000) | £90,000 | £11,200 | £12,301 | £1,101 | £12,668 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £360,000 (capped at £300,000) | £90,000 | £10,700 | £11,626 | £926 | £11,993 | £367 |
Married, wife working, 2 children at school, no mortgage | £90,000 | £14,380 | £16,594 | £2,214 | £16,961 | £367 |
Married, wife working, no children, no mortgage | £100,000 | £17,380 | £20,000 | £2,620 | £20,000 | £0 |
Married, wife working, no children, mortgage £360,000 (capped at £300,000) | £100,000 | £14,200 | £16,351 | £2,151 | £16,718 | £367 |
Married, wife working, 2 children at school, mortgage £360,000 (capped at £300,000) | £100,000 | £13,200 | £15,001 | £1,801 | £15,368 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £360,000 (capped at £300,000) | £100,000 | £12,700 | £14,326 | £1,626 | £14,693 | £367 |
Married, wife working, 2 children at school, no mortgage | £100,000 | £16,380 | £19,000 | £2,620 | £19,661 | £661 |
Married, wife working, no children, no mortgage | £110,000 | £19,380 | £22,000 | £2,620 | £22,000 | £0 |
Married, wife working, no children, mortgage £360,000 (capped at £300,000) | £110,000 | £16,200 | £19,051 | £2,851 | £19,418 | £367 |
Married, wife working, 2 children at school, mortgage £360,000 (capped at £300,000) | £110,000 | £15,200 | £17,701 | £2,501 | £18,068 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £360,000 (capped at £300,000) | £110,000 | £14,700 | £17,026 | £2,326 | £17,393 | £367 |
Married, wife working, 2 children at school, no mortgage | £110,000 | £18,380 | £21,000 | £2,620 | £22,000 | £1,000 |
Married, wife working, no children, no mortgage | £120,000 | £21,380 | £24,000 | £2,620 | £24,000 | £0 |
Married, wife working, no children, mortgage £360,000 (capped at £300,000) | £120,000 | £18,200 | £21,751 | £3,551 | £22,118 | £367 |
Married, wife working, 2 children at school, mortgage £360,000 (capped at £300,000) | £120,000 | £17,200 | £20,401 | £3,201 | £20,768 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £360,000 (capped at £300,000) | £120,000 | £16,700 | £19,726 | £3,026 | £20,093 | £367 |
Married, wife working, 2 children at school, no mortgage | £120,000 | £20,380 | £23,000 | £2,620 | £24,000 | £1,000 |
Married, wife working, no children, no mortgage | £130,000 | £23,380 | £26,000 | £2,620 | £26,000 | £0 |
Married, wife working, no children, mortgage £360,000 (capped at £300,000) | £130,000 | £20,200 | £24,451 | £4,251 | £24,818 | £367 |
Married, wife working, 2 children at school, mortgage £360,000 (capped at £300,000) | £130,000 | £19,200 | £23,101 | £3,901 | £23,468 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £360,000 (capped at £300,000) | £130,000 | £18,700 | £22,426 | £3,726 | £22,793 | £367 |
Married, wife working, 2 children at school, no mortgage | £130,000 | £22,380 | £25,000 | £2,620 | £26,000 | £1,000 |
Married, wife working, no children, no mortgage | £140,000 | £25,380 | £28,000 | £2,620 | £28,000 | £0 |
Married, wife working, no children, mortgage £400,000 (capped at £300,000) | £140,000 | £22,200 | £27,151 | £4,951 | £27,518 | £367 |
Married, wife working, 2 children at school, mortgage £400,000 (capped at £300,000) | £140,000 | £21,200 | £25,801 | £4,601 | £26,168 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £400,000 (capped at £300,000) | £140,000 | £20,700 | £25,126 | £4,426 | £25,493 | £367 |
Married, wife working, 2 children at school, no mortgage | £140,000 | £24,380 | £27,000 | £2,620 | £28,000 | £1,000 |
Married, wife working, no children, no mortgage | £150,000 | £27,380 | £30,000 | £2,620 | £30,000 | £0 |
Married, wife working, no children, mortgage £400,000 (capped at £300,000) | £150,000 | £24,200 | £29,851 | £5,651 | £30,000 | £149 |
Married, wife working, 2 children at school, mortgage £400,000 (capped at £300,000) | £150,000 | £23,200 | £28,501 | £5,301 | £28,868 | £367 |
Married, wife working, 1 child at school, 1 child at university, mortgage £400,000 (capped at £300,000) | £150,000 | £22,700 | £27,826 | £5,126 | £28,193 | £367 |
Married, wife working, 2 children at school, no mortgage | £150,000 | £26,380 | £29,000 | £2,620 | £30,000 | £1,000 |
Married, wife working, no children, no mortgage | £160,000 | £29,380 | £32,000 | £2,620 | £32,000 | £0 |
Married, wife working, no children, mortgage £400,000 (capped at £300,000) | £160,000 | £26,200 | £32,000 | £5,800 | £32,000 | £0 |
Married, wife working, 2 children at school, mortgage £400,000 (capped at £300,000) | £160,000 | £25,200 | £31,000 | £5,800 | £31,568 | £568 |
Married, wife working, 1 child at school, 1 child at university, mortgage £400,000 (capped at £300,000) | £160,000 | £24,700 | £30,500 | £5,800 | £30,893 | £393 |
Married, wife working, 2 children at school, no mortgage | £160,000 | £28,380 | £31,000 | £2,620 | £32,000 | £1,000 |
Married, wife working, no children, no mortgage | £170,000 | £31,380 | £34,000 | £2,620 | £34,000 | £0 |
Married, wife working, no children, mortgage £400,000 (capped at £300,000) | £170,000 | £28,200 | £34,000 | £5,800 | £34,000 | £0 |
Married, wife working, 2 children at school, mortgage £400,000 (capped at £300,000) | £170,000 | £27,200 | £33,000 | £5,800 | £34,000 | £1,000 |
Married, wife working, 1 child at school, 1 child at university, mortgage £400,000 (capped at £300,000) | £170,000 | £26,700 | £32,500 | £5,800 | £33,593 | £1,093 |
Married, wife working, 2 children at school, no mortgage | £170,000 | £30,380 | £33,000 | £2,620 | £34,000 | £1,000 |
Married, wife working, no children, no mortgage | £180,000 | £33,380 | £36,000 | £2,620 | £36,000 | £0 |
Married, wife working, no children, mortgage £400,000 (capped at £300,000) | £180,000 | £30,200 | £36,000 | £5,800 | £36,000 | £0 |
Married, wife working, 2 children at school, mortgage £400,000 (capped at £300,000) | £180,000 | £29,200 | £35,000 | £5,800 | £36,000 | £1,000 |
Married, wife working, 1 child at school, 1 child at university, mortgage £400,000 (capped at £300,000) | £180,000 | £28,700 | £34,500 | £5,800 | £36,000 | £1,500 |
Married, wife working, 2 children at school, no mortgage | £180,000 | £32,380 | £35,000 | £2,620 | £36,000 | £1,000 |
Single, no children, mortgage £120,000, Life Assurance Premiums £1000 | £30,000 | £3,407 | £3,178 | -£230 | £3,407 | £230 |
Single, 1 child at school, mortgage £240,000, Life Assurance Premiums £1000 | £60,000 | £6,656 | £7,671 | £1,015 | £7,900 | £230 |
Single, no children, mortgage £240,000, Life Assurance Premiums £5000 | £90,000 | £13,256 | £17,661 | £4,405 | £17,890 | £230 |
Married, wife working, 2 children at school, mortgage £200,000, Life Assurance Premiums £1000 | £50,000 | £3,299 | £2,932 | -£367 | £3,299 | £367 |
Married, wife working, no children, mortgage £360,000 (capped at £300,000), Life Assurance Premiums £5000 | £90,000 | £11,200 | £13,651 | £2,451 | £14,018 | £367 |
Married, wife working, 2 children at school, mortgage £360,000 (capped at £300,000), Life Assurance Premiums £5000 | £90,000 | £10,200 | £12,301 | £2,101 | £12,668 | £367 |
Married, wife working, 2 children at school, mortgage £400,000 (capped at £300,000), Life Assurance Premiums £10,000 | £170,000 | £25,200 | £32,800 | £7,600 | £34,000 | £1,200 |
Single OAP (63 for the whole year) | £12,000 | £0 | £0 | £0 | £0 | £0 |
Single OAP (63 for the whole year) | £20,000 | £2,079 | £1,823 | -£257 | £2,079 | £257 |
Single OAP (63 for the whole year) | £35,000 | £5,800 | £5,873 | £73 | £6,129 | £257 |
Married OAP (63 for the whole year) | £20,000 | £0 | £0 | £0 | £0 | £0 |
Married OAP (63 for the whole year), wife has pension by virtue of her own contributions | £30,000 | £1,418 | £996 | -£421 | £1,418 | £421 |
Married OAP (63 for the whole year), wife has pension by virtue of her own contributions | £45,000 | £5,468 | £5,046 | -£421 | £5,468 | £421 |
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Notes: Where single parent assumes additional personal allowance is due. Where wife working assumes income over £4500. | | | | | | |
Where child allowance given assumes any income in the child's own right does not exceed £2500. | | | | | | |
Allowable Mortgage interest calculated at 5.3%. | | | | | | |
All OAP calculations assume no children and no mortgage. | | | | | | Income Tax personal allowances in Jersey are quite low. The single person's allowance is £2,600 and the married man's allowance is £5,200. Although there is also a tax allowance of one quarter of earned income (earned income allowance up to a maximum of £3,400) this still makes a single person or a married man potentially liable to tax on a comparatively low income. There are tax exemption thresholds to prevent liability to tax on low incomes. These are as follows. Single person £11,020 Married person £17,680 Single person over 63 years of age £12,300 Married person over 63 years of age £20,250 These exemption thresholds are increased if the single person or married man is entitled to any of the following allowances or reliefs. Lower child allowance (child at school) £2,500 Higher child allowance (child in higher education) £5,000 Additional personal allowance (single parent) £4,500 Wife’s earned income allowance (wife working) £4,500 (max) Child care tax relief £6,150 (max) Qualifying maintenance payments Qualifying interest tax relief Because of these exemption thresholds (increased as appropriate by the above allowances or reliefs) it is only those with high incomes who do not benefit from them. Lower and middle income earners whose total income is in excess of their exemption threshold fall into what is termed the “marginal band”. The calculation of their liability to tax at the marginal rate of 27% ensures that there is no disproportionate increase in their tax bill if their income exceeds their exemption threshold. The attached examples show how the marginal rate of 27% is applied to lower and middle income earners. EXAMPLE ONE Single Person | | | | Single Person | Calculation at 20% rate | | | | Calculation at 27% marginal rate | | Earnings | | £12,000 | | Earnings | £12,000 | Less: | Personal allowance | £2,600 | | | Less Exemption threshold | £11,020 | Earned income allowance | £3,000 | | | | | (1/4 x £12,000) | | | | | | | | £ 5,600 | | | | Taxable income = | | £ 6,400 | | Excess = £ 980 | | | | | | | Tax payable £6,400 x 20% = £1,280 | | | | Tax payable £980 x 27% = £265 | | | | | | | | | | | | | | | | | | | | | |
The amount of tax due is the lower of the two calculations = £265 EXAMPLE TWO Married Man | | | | Married Man | Calculation at 20% rate | | | | Calculation at 27% marginal rate | | Earnings | | £21,000 | | Earnings | £21,000 | Less | Personal allowance Earned income allowance (max) Child allowance (1 child) Life Insurance relief Taxable income = Tax payable £9,400 x 20% = £1,880 | £5,200 £3,400 £2,500 £ 500 | £11,600 £ 9,400 | | Less: Exemption Limit Excess = Tax payable £820 x 27% = £221 | £20,180 £ 820 | | | | | | | [1] Appendix C is included to explain the 27% marginal rate and its inter-action with the 20% rate and why the 27% rate exists. |
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