A new tax scheme has been created in Jersey as the OFC attempts to bring in more high net worth individuals from other countries.
The new tax policy is also designed to encourage these high net individual to invest in the country. The new system was voted in by a majority of 35 to ten by Jersey politicians. The main aspects of the scheme are to charge wealthy individuals 20 percent on the initial £625,000 of their income, and simply charge one percent thereafter.
The new scheme is set to replace the previous one established in 1970 that was known as 1(1)(k), which was available to people who had been given permission to live in Jersey but not with housing qualifications. Residents who qualified for 1(1)(k) were charged 20 per cent tax on the initial £1 million of income sourced outside of Jersey, a further 10 per cent on the following £500,000 and one per cent on all income after that.
The changes were made after the government of Jersey conducted an investigation into getting more wealthy individuals onto the Island as to help reduce its deficit.
Jersey’s minister for treasury and resources, Senator Philip Ozouf, said: “The changes are designed to encourage more wealthy individuals to move to Jersey, particularly those who wish to bring a business to the Island. This will have the effect of creating employment and enhancing economic activity in many sectors.”