High Value residents purchasing properties via share transfer (FOI)

Request

A

Is stamp duty payable on properties in Jersey purchased via share transfer?

B

In the last five years how many incoming High Net Worth (HNW) individuals have purchased residential properties using share transfer?

C

How much stamp duty was payable as the result of the recent change of ownership of St John's Manor?

D

Is there a mechanism in place to ensure that new high value residential properties, like the one planned for the Water's Edge Hotel, are only able to change ownership in a way that attracts the full rate of stamp duty applicable to freehold transfers?

Response

A

The tax payable on a share transfer purchase of a dwelling (which is Land Transaction Tax) is exactly equal to that which would be payable under the Stamp Duties and Fees (Jersey) Law 1998 for freehold transactions. Further information on Land Transaction Tax can be found on www.Gov.je:

Introduction to land transaction tax (gov.je)

Alternatively, further information is available via the Jersey Citizens Advice Bureau.

Jersey Citizens Advice - Purchase of property - Share Transfer ( 11.1.30.L6 ) (cab.org.je)

Article 23 of the Freedom of Information (Jersey) Law 2011 (information accessible by other means) applies.

B

The below table shows the number of incoming “2(1)(e)” individuals who have purchased residential properties by way of share transfer. It is the standing policy of the Comptroller of Revenue not to specify numbers fewer than 12 to avoid inadvertent exposure of individuals, therefore article 25 of the Freedom of Information (Jersey) Law 2011 (personal information) applies.

“2(1) (e)” refers to people granted Entitled status under Regulation 2(1) (e) of the Control of Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013.

C

This information is not held. Article 3 of the Freedom of Information (Jersey) Law 2011 applies.

D

It is a condition of an Entitled permission granted under Regulation 2(1) (e) that any property, or shares in a company owning a property, purchased by the High Value Resident (HVR) either in their individual name, or via a body corporate, must be subject to Land Transaction Tax or Stamp Duty.

A legal person cannot acquire property in Jersey without the prior consent of the Minister. In deciding whether to grant consent, the Minister will take into account whether consent, can, in the best interests of the community, be justified, with particular regard to the supply and demand of property and, where relevant, to promoting ownership of residential property by persons with Entitled status.

Standard conditions will be applied to any consent granted requiring that freestanding residential property must be sold out of the company name, by way of a freehold sale to persons with Entitled or Licensed status, at the end of the development, and any such transaction will incur Stamp Duty.

Articles applied

Article 23 - Information accessible to applicant by other means

(1) Information is absolutely exempt information if it is reasonably available to the applicant, otherwise than under this Law, whether or not free of charge.

(2) A scheduled public authority that refuses an application for information on this ground must make reasonable efforts to inform the applicant where the applicant may obtain the information.

Article 25 - Personal information

(1) Information is absolutely exempt information if it constitutes personal data of which the applicant is the data subject as defined in the Data Protection (Jersey) Law 2005.

(2) Information is absolutely exempt information if –

(a) it constitutes personal data of which the applicant is not the data subject as defined in the Data Protection (Jersey) Law 2018; and

(b) its supply to a member of the public would contravene any of the data protection principles, as defined in that Law.