Taxation under the High Value Residents scheme (FOI)

Request

Is the High Value Residency income tax regime of 20% on the first £625,000 of worldwide earned income (equivalent to £125,000), plus an additional 1% on all other worldwide income accessible to all resident tax payers with equivalent income, and if not then why not?

If the answer is that despite having equivalent income that tax regime is not available to existing residents does that comply with local and international antidiscrimination legislation?

Response

It is assumed the question refers to 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. This is the High Value Resident Scheme which is designed to attract High net worth individuals to live and work in Jersey.

When an individual is granted 2(1) (e) status, they are entitled to be taxed in accordance with the preferential tax rate of (currently) 1% on all income they generate annually – except for the first £625,000 of income which is always taxed at 20%. In Jersey access to the preferential tax rate is granted through residential status, determined under the above Law. By definition this preferential rate is not available to other Jersey taxpayers (including those who may have similar levels of personal income) who are not granted this residential status. Many other jurisdictions have similar regimes designed to attract high net worth individuals.

The Comptroller of Taxes is satisfied that the scheme is compliant both with domestic law and Jersey’s international treaty obligations.