• Change applies to new residents under 2(1)(e) “Version 5” scheme
• Minister for Treasury and Resources has lodged legislation
• Other planned changes include raising minimum property purchase price for 2(1)(e)s to £3.5 million
The Minister for Treasury and Resources, Deputy Ian Gorst, has lodged legislation to increase the minimum tax payable by new 2(1)(e) residents under the High Value Residency Scheme.
The minimum tax paid by new high net worth residents will rise to £250,000 a year under the legislation proposed.
The Chief Minister, Deputy Kristina Moore said: “This Government welcomes people who generate wealth and contribute to sustainable economic growth, whether home-grown or those who want to make Jersey their home and become part of our community. We believe we have a package of measures that will maintain a stable and supportive environment for relocation and investment, whilst requiring a modest increase to their contribution to the public purse.
“We value our 2(1)(e) community; they are a dynamic group of people who contribute generously to Jersey. These changes reflect the value of Jersey’s offer to them: a safe, stable, and welcoming community, natural beauty, excellent health, and education systems, in a well-connected location.”
In the Government Plan last year, the States Assembly agreed to increase the minimum tax payable by new residents under the current (Version 4) scheme from January 2023 to £170,000 a year – reflecting the increase in the cost of living since Version 4 was introduced in 2018 – a process set out under existing legislation.
The proposed new legislation follows a review by the Housing and Work Advisory Group (HAWAG), chaired by the Chief Minister. HAWAG examined the available evidence, including the number of applications and house prices data, and considered the views of recent applicants and industry professionals.
The rise will not affect existing 2(1)(e) residents, who will continue to pay tax at their current rate.
Other planned changes following the review include:
• increasing the minimum price of a property new 2(1)(e) residents can purchase from £1.75 million to £3.5 million.
• a new formal expectation that applicants should have a net worth of at least £10 million, excluding their place of residence.
Ministers have also asked for more work to be done to better identify the levels of charitable giving by 2(1)(e) residents through a kitemark scheme.
Deputy Gorst said: “I am pleased to support the Housing and Work Advisory Group, ensuring that new residents contribute even more to the public purse. Our 2(1)(e) residents already deliver significant benefits to Jersey, both economically and socially, and are very much welcome as part of our diverse community.”
Government of Jersey News Release