13 December 2016
A review of the tax regime that aims to attract High Value Residents to Jersey has found that more people relocated to Jersey under the post-2011 scheme than in preceding years. It found that the updated scheme has encouraged more people to relocate to Jersey, which has increased tax revenue and brought economic benefit to the Island. The scheme has encouraged those people who move here to bring their assets with them and to establish new businesses here.
The Treasury and Resources Minister, Senator Alan Maclean, has published the findings of the Review of Jersey’s High-Value Resident Regime, which was introduced in its current form in July 2011. The review team from Jersey’s Taxes Office, supported by Officials from across States Departments, concluded that the latest version of the Regime was more effective than previous regimes in attracting entrepreneurs to Jersey and improving tax revenues; and that HVRs were making a significant contribution to all aspects of Island life.
Senator Maclean said “The really positive news is that the new HVR Regime has brought us a much broader range of people who have not just brought their wealth to Jersey but their expertise and entrepreneurship. As Treasury Minister it’s important that everyone who has come to Jersey under the new regime has been able to meet their commitment to pay at least £125,000 yearly in tax.
“In 2014 thirty-four High Value Residents contributed approximately £4 million of Jersey’s personal income tax revenue. That’s 1% of all the personal income tax paid. This is a significant contribution to the funds that help us provide public services for all islanders. An external review of the tax regime also estimated the wider economic benefits of this tax regime as at least £50-£70 million in 2010.”
The Chief Minister, Senator Ian Gorst, added “Our most active wealthy immigrants have touched the lives of many of our Islanders, employing people in their enterprises and contributing to our charities, churches, societies and sporting associations. More HVRs are now associated with new-business set-ups and they continue to give time, expertise and money to Island life.”
The Assistant Chief Minister for Population, Senator Paul Routier - who approves HVR applications on behalf of the Chief Minister - said “I’m pleased to see that the 2011 Regime is showing strong signs of success. A lot of that is down to the excellent work of Locate Jersey and everybody else involved in the application and approval process, including the Taxes Office and Population Office. We welcome High-Net-Worth Individuals to Jersey for their contribution, be that financial, economic or cultural. Jersey remains open for business.”
The Minister for Economic Development, Senator Lyndon Farnham, said “We are delighted to see that the numbers of High Value Families relocating to Jersey has continued to increase in recent years. We have seen considerable investment in properties and the redevelopment of our larger houses provides both employment and income.
“Many of these families are setting up businesses here and providing employment for local people. They also give to the community in other ways and their contribution to island life is much appreciated.”
The review recommends improvements to the HVR Regime, which the Council of Ministers has strongly endorsed. They include:
- taking advantage of new legal advice to create a Minimum Annual Tax Charge to replace the current expected annual minimum income tax contribution. This would apply for new HVRs who relocate to Jersey in, or after, 2018
- setting the Minimum Annual Tax Charge at £145,000 for 2018
- maintaining the real value of the Minimum Annual Tax Charge through regular uprating, probably every five years
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