About land transaction tax

​​​About land transaction tax

Land transaction tax (LTT) is a form of duty on share transfer transactions where the shares 'confer a right of occupation of land in Jersey'.

There are charges for:

• a transfer of ownership
• a declaration that a share is held on trust for the benefit of a person or changing the person for whose benefit the share is held
• taking out a security interest agreement against the shares
  

Who pays land transaction tax

LTT is paid by:

• the person who buys shares in the company and those shares give the right of occupation to the property
• the beneficiary of a trust that purchases the shares of a company and those shares give the right of occupation to the property
• a person that is substituted for another person as a beneficiary of a trust, where the trust holds the shares of a company and those shares give the right of occupation to the property
• a secured party who has created a secured interest on the shares under a security agreement. For example, where a mortgage has been taken to finance the purchase of the shares

'Right of occupation' relates to the terms in the articles of association of the company. It has no connection to housing qualifications or residency. If the articles confer a 'right of occupation' then land transaction tax is due, whether or not actual occupation takes place.

LTT charges

Transfer of ownership charges

LTT is calculated on the greater of  the consideration paid or the gross value of the land for the shares purchased. The rate of duty depends on:

• the value of the transaction
  
• whether the property will be your main residence
• whether you are a first-time buyer
  

Security interest charges

This charge will apply if you take out a security interest agreement (for example, a secured loan) in respect of the shares in the company. There is a reduced rate for 'lower value' residential properties.

Calculating the charge

You can work out how much LTT is due on either a transfer of ownership or a security interest agreement on calculating your land transaction tax.

Documentation

To pay the tax due on the transfer of shares or on the creation of a security interest you'll need to fill out the online form. The information about completing the form can be found on completing land transaction tax for​​​ms.

Paying land transaction tax

Once you have completed the online form, you will be automatically redirected to the payment page. Once payment is made, you will be provided with an online receipt of proof of payment.

Alternatively, you can choose to pay by bank transfer. You must use the reference number generated by the online form. The reference number will be in the format LTT-123456789.

Due date

The LTT is due within 28 days following the date of the transaction. If the tax is not paid within this time limit, a surcharge of 10% will be charged. LTT can be paid in advance of the transaction.

Non-sterling transactions

If the consideration is made in any currency other than sterling the value of the transaction shall be the equivalent value in sterling. You'll need to obtain a certificate signed by an officer of a bank in Jersey showing the rate of exchange prevailing on the day of the transaction.

The company secretary

The duty of a company secretary in respect of land transaction tax

A company secretary cannot transfer the shares into the new owners' name without having the LTT receipt or a certified copy.

Failure to comply with this regulation is an offence under Article 42 of the Companies (Jersey) Law 1991 and could result in the company being subject to a fine at level 3 on the standard scale.

Errors, appeals and penalties

I have made an error when calculating the LTT

You must bring the error to the attention of Revenue Jersey without delay with your revised calculations. Any overpaid LTT will be refunded. If you have underpaid you'll need to pay the additional duty and may also be subject to a surcharge. You'll be issued with a revised LTT receipt.

I have lost the LTT receipt

You may apply to the Comptroller to issue a replacement receipt if you have lost, destroyed or damaged your LTT receipt. A charge will be made.

The Comptrollers powers

The Comptroller may require a person to deliver a statement and supporting information in respect of any transaction to which the Land Transaction (Jersey) Law 2009 applies.

The Comptroller also has the power to make an assessment on a person if they believe the person has not complied with the LTT Law or if they are of the opinion that the purpose of a transaction is the reduction or avoidance of the LTT.

Retention of records relating to LTT

You are required to retain records for a period of 6 years following the date of the transaction.

I need to leave a complaint or compliment

If you wish to give feedback about the conduct of an officer of Revenue Jersey, you should do this using the customer feedback online form.

Customer feedback

I want to dispute a decision or appeal an assessment

If you wish to appeal an assessment, you should first contact Revenue Jersey who will seek to resolve your appeal.

If you remain aggrieved by any decision of, or assessment made by, the Comptroller under the LTT Law you are entitled to appeal. Your appeal may be heard by the Commissioners of appeal who are an independent body and have the power to uphold or revoke an appeal or to vary any decision, or substitute their own direction as they see fit.

Commissioners of appeal

Penalties

Failure to deliver a statement and pay the LTT is an offence. It's also an offence to deliver false or misleading information or aiding or conspiring with someone to deliver false or misleading information. The penalties for such offences are severe and could lead to imprisonment and fines.

Advice regarding land transaction tax

Your lawyer or conveyancer will be able to help you regarding the LTT amount to pay and completing the forms.​​​