Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and Appointed Day Act

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A decision made (28/09/2009) regarding: Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and Appointed Day Act.

Decision Reference: MD-TR-2009-0152
Decision Summary Title:	Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and Appointed Day Act		Date of Decision Summary:	22/09/2009
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:	Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and Appointed Day Act		Date of Written Report:	22/09/2009
Written Report Author:	Tax Policy Advisor		Written Report : Public or Exempt?	Public
Subject: Lodge au Greffe Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and the Appointed Day Act for debate 8 December during the Budget.
Decision(s): The Minister approved the Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and the Appointed Day Act and agreed that they be lodged au Greffe at the earliest opportunity for debate 8 December during the 2009 Budget.
Reason(s) for Decision: To enable the Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200-, Appointed Day Act and accompanying report to be lodged au Greffe and debated during the Budget debate.
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: States Greffe to lodged ‘au Greffe’ the Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and Appointed Day Act with accompanying reports and request that it be lodged for debate during the 2009 Budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and Appointed Day Act

Treasury and Resources Minister

Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200-

Purpose of report

The purpose of this Proposition is to introduce the Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200-. There is also a separate report for the Appointed Day Act. These are the final steps in the process to implement Land Transactions Tax (LTT).

The Regulations deal with how refinancing will work under LTT. They have been drafted so that refinancing works in exactly the same way as intended under the Stamp Duties and Fees (Jersey) Law 1998.

The Appointed Day Act ensures that LTT will come into force on 1 January 2010.

Background

This Proposition is the next 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. It 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 approves the Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 200- and that it be lodged au Greffe at the earliest opportunity for debate 8 December during the Budget.

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. The administration of LTT will be absorbed by the current manpower resources in the Treasury department.

Treasury and Resources Minister

Taxation (Land Transactions) (Jersey) Law 2009 (Appointed Day) Act 200-

Purpose of report

The purpose of this Proposition is to introduce the Appointed Day Act for Land Transactions Tax so that it comes into force on 1 January 2010.

Background

This Proposition 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. It 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 approves the Appointed Day Act and that it be lodged au Greffe at the earliest opportunity for debate 8 December during the Budget.

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.