Tax in Jersey

Jersey is the largest of the Channel Islands and the closest to the French mainland. Jersey is a British Crown Dependency, meaning it has its own government and legal system, giving it full autonomy over the Island’s tax regime, whilst the UK is responsible for its defence and international relations. 

Jersey is a globally renowned, long established international financial centre, with some of the key factors behind its success being tax neutrality for businesses, proximity to the both the UK and Europe, and a welcoming tax environment for high net worth individuals.

Please see below details regarding the key tax considerations for both individuals and companies in Jersey.

Individuals

Income tax in Jersey is charged at a maximum rate of 20%, depending upon the availability of reliefs and allowances.

An individual’s income tax liability is calculated using two methods: the standard rate method (a flat 20% tax on total taxable income) and the marginal relief method (26% tax on taxable income less the personal exemption, child allowance and certain other reliefs); the individual pays tax based on the lower of the two methods.

The personal exemption in Jersey for 2024 is £20,000 per single person or £32,050 for a married couple.

Jersey is currently transitioning from married couples taxation to an independent taxation regime, being mandatory for anyone moving to the Island now and, based on current proposals, for all taxpayers from 1 January 2026. Up to this date, married couples and civil partnerships will continue to be taxed as a single unit, provided they were married and arrived in Jersey prior to 1 January 2022.

Jersey has a high value resident (‘HVR’) regime for high net worth individuals moving to the Island. Criteria for an application under the HVR regime to be considered by the Government of Jersey include the ability to demonstrate a minimum level of recurring taxable income, currently of £1.25 million per annum (with a resultant minimum income tax liability of £250,000 per annum), and net assets in excess of £10 million (excluding the individual’s main residence).  Subject to a successful application, the individual is granted the right to acquire a high value residential property (£3.5 million for a house or £1.75 million for an apartment) in the Island and can access a beneficial rate of tax (1%) on any income in excess of £1.25 million.

Jersey does not levy Capital Gains Tax or Inheritance Tax. A Goods and Services Tax (‘GST’) is levied at a maximum of 5%.

The Jersey tax year runs from 1 January to 31 December. The due date for the filing of personal tax returns is 31 July in the year following the relevant tax year.

Corporate

The default income tax rate for companies in Jersey is 0%.

Certain “financial services companies” are subject to income tax at a higher rate of 10%.

A 20% rate of income tax applies to the following:

1. Utility companies
2. Income derived from the importation and supply of hydrocarbon oils
3. Income derived from quarrying in Jersey
4. Income derived from Jersey real estate (property development and/or rental businesses)

In addition, ‘large corporate retailers’ (companies with £2 million or more in retail sales to Jersey customers and for whom retail sales to Jersey customers make up at least 60% of its trading turnover) are taxable on a sliding scale between 0 and 20%, depending on profit level.

Jersey tax returns for companies are due for submission by 30 November in the year following the relevant tax year.

Economic substance

Effective from 2019, Jersey – along with the majority of other international financial centres – implemented economic substance obligations. These need to be considered on a case-by-case basis, however they generally result in ensuring that Jersey resident companies perform certain specific activities on-Island.