Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009

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A decision made 15 December 2009 regarding: Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009.

Decision Reference: MD-TR-2009-0211
Decision Summary Title:	DS - Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009		Date of Decision Summary:	15/12/2009
Decision Summary Author:	Tax Policy Advisor		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	WR - Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009		Date of Written Report:	15/12/2009
Written Report Author:	Tax Policy Advisor		Written Report : Public or Exempt?	Public
Subject: Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009
Decision(s): The Minister made the Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009.
Reason(s) for Decision: The Order is a legal requirement for Land Transactions Tax to come into effect on 1 January 2010. It prescribes the information and particulars of the LTT Statement and LTT receipt.
Resource Implications: It is expected that LTT will raise in the region of £1m to £2m a year. Only a broad estimate is possible given the data available on share transfer transactions. There are no other financial implications. There are no additional manpower implications as a result of this decision because the administration of LTT will be absorbed by the current manpower resources in the Treasury department.
Action required: Notify the Greffe and the Draftsman that the Order has been made and forward the signed and sealed Order to the Greffe for archiving.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009

Treasury and Resources Minister

Taxation (Land Transactions) (LTT Statements and Receipts) (Jersey) Order 2009

Purpose of report

The purpose of this report is to support the making of the Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009.

This is the last step in the process to implement Land Transactions Tax (LTT). The Order prescribes the information and particulars of the LTT Statement and LTT receipt. It also sets the fee for a replacement LTT receipt at £50. The Order will come into force on 1 January 2010.

Background

Making the Order is the last step in implementing LTT – a tax on ‘share transfer’ transactions which confer rights of occupation of land in Jersey.

The tax payable will be equal to that which would have been payable under the Stamp Duties and Fees (Jersey) Law 1998 for registered transactions and includes all relevant discounts (eg those for first time buyers).

At the moment freehold purchasers are required to pay Stamp Duty under the Stamp Duties and Fees (Jersey) Law 1998 where as those purchasing property by share transfer pay no such charge. In the latter case the owner of the property (i.e. the company in which the shares are purchased in consideration of the right to occupy that property) has not changed – hence there is no requirement to register the transaction in the Royal Court or pay the associated Stamp Duty.

The Proposition Draft Taxation (Land Transactions) (Jersey) Law 200- (P185/2007) was approved by the States on 17 June 2008.

The Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations (P159/2009) and Appointed Day Act (P158/2009) was approved by the States on 10 December 2009.

This all followed the 2005 States decision to approve the Deputy of St Martin’s proposition (P211/2004) charging the (then) Finance and Economics Committee to prepare the necessary legislation, for consideration by the States, to introduce stamp duty on share transfer transactions involving immoveable residential and commercial property in Jersey.

Recommendation

That the Minister makes the Taxation (Land Transactions) (LTT statements and receipts) (Jersey) Order 2009.

Financial/manpower implications

It is expected that LTT will raise in the region of £1m to £2m a year. Only a broad estimate is possible given the data available on share transfer transactions. There are no other financial implications.

There are no additional manpower implications as a result of this decision because the administration of LTT will be absorbed by the current manpower resources in the Treasury department.