Change of use of property from main residence to commercial letting
Relief for main residence
You will get a relief in your income tax assessment for interest paid on a loan taken out to buy or extend your main residence. This is subject to the conditions laid out in Article 90AA of the Income Tax Law.
Relief for commercially let property
If a property is bought to be let commercially, relief for interest paid on that loan will be granted under Article 90AB.
Main residence changing to commercially let property
Previously, if you moved out of your main residence and subsequently let it on a commercial basis, the interest paid on the loan to purchase the property did not fall within the provisions of Article 90AB. By concession, Revenue Jersey allowed relief for the interest paid on a loan that was previously allowable under Article 90AA, as if it qualified under Article 90AB, subject to the restrictions in Article 90AB.
Finance Law 2022 amended Article 90AB to put this practice onto a statutory footing from the year of assessment 2022.
Income Tax (Jersey) Law
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