Amendment to proposed pension tax legislation.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (20/11/2008) regarding: Amendment to proposed pension tax legislation.

Decision Reference: MD-TR-2008-0129
Decision Summary Title:	Proposed amendment to Income Tax (Amendment No. 31)(Jersey) Law 200-		Date of Decision Summary:	17th November 2008
Decision Summary Author:	Malcolm Campbell Comptroller of Income Tax		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	Malcolm Campbell
Written Report Title:	Proposed amendment to Income Tax (Amendment No. 31)(Jersey) Law 200-		Date of Written Report:	17th November, 2008
Written Report Author:	Malcolm Campbell Comptroller of Income Tax		Written Report : Public or Exempt?	Public
Subject: Amendment to proposed pension tax legislation.
Decision(s): The Minister decided to amend the previously proposed increase to £250,000 in the pensions contribution limit, and instead to increase the contribution limit to £50,000 from year of assessment 2009, with a further commitment to review and possibly increase the limit in an orderly manner in future Budgets, and to approve the attached draft legislation.
Reason(s) for Decision: To allow time for a more cautious, prudent and conservative approach to this simplifying and liberalising proposal, in view of indications that Her Majesty’s Customs and Revenue in the United Kingdom may well scale back what is termed its too generous - £255,000 for 2010/2011 - contribution limit.
Resource Implications: There are no quantifiable financial implications.
Action required: Comptroller of Income Tax to forward The Amendment to the Draft Income Tax (Amendment No.31)(Jersey) Law 200- to the States Greffe to be printed and lodged.
Signature:		Position: Senator T A Le Sueur, Minister for Treasury and Resources
Date Signed: 20th November 2008		Date of Decision: 20th November 2008

Amendment to proposed pension tax legislation.

MINISTER FOR TREASURY AND RESOURCES

Report on Amendment (Pensions Contribution Limit)

The effect of these amendments would be to reduce the £250,000 contribution limit for pensions set out in the draft Law to £50,000.

The original proposal for a £250,000 contribution limit for pensions was based on current limits in the Isle of Man and the United Kingdom. Recent indications emanating from the United Kingdom suggest there may be some scaling back of their generous limit in the future. In view of this The Minister for Treasury and Resources is taking a cautious and prudent approach and has substituted a limit of £50,000 for the year of assessment 2009. This limit will be reviewed and may be increased in subsequent years in the light of further information.

Financial and manpower implications

There are no quantifiable financial implications.

Note:

This amendment has been lodged by the Minister for Treasury and Resources less than 14 days before the start of the debate in accordance with the provisions of Article 20(3) of the Public Finances (Jersey) Law 2005. Paragraphs (2) and (3) of Article 20 are in the following terms –

(2) A draft or proposition to which this Article applies is not capable of being amended during a debate in the States on the draft or proposition except in accordance with an amendment lodged at least 14 days before the start of the debate.

(3) Paragraph (2) does not apply to an amendment moved by the Minister if the States agree that the amendment may be debated forthwith or at a time approved by the States.

In accordance with the provisions of paragraph (3) the Minister for Treasury and Resources will seek the agreement of the States to debate this amendment during the debate on the Budget 2009.

1 PAGE 12, ARTICLE 3 –

In the inserted Article 131(1)(ab)(i) for the amount

“£250,000” substitute the amount “£50,000”.

2 PAGE 12, ARTICLE 4(c) –

In the substituted Article 131B(3)(b)(vi) for the amount “£250,000” substitute the amount “£50,000”.

3 PAGE 14, ARTICLE 4(i)

In the substituted Article 131B(9) for the amount “£250,000” substitute the amount “£50,000”.

4 PAGE 15, ARTICLE 5(c)

In the substituted Article 131CA(3)(g)(vi) for the amount “£250,000” substitute the amount “£50,000”.

5 PAGE 16, ARTICLE 5(g)

In the substituted Article 131CA(12) for the amount “£250,000” substitute the amount “£50,000”.