Changes proposed to tax rules for new wealthy 1(1)k immigrants would drop their Jersey tax rate from 20% to 1%, matching the existing 1% rate for foreign income.
New super-rich immigrants would still have to pay a minimum of £125,000 a year under changes approved in last year’s Budget, but the new proposals by Treasury Minister Philip Ozouf could have a major knock-on effect on local businesses.
Because current tax rates for 1(1)k immigrants are higher in Jersey than outside the Island, they can save on their tax bill by basing their investments and companies elsewhere.
The Treasury department’s chief tax expert Wendy Martin says that the change would lead to more investment in the Island, potentially more work for the finance industry and more super-rich immigrants coming to Jersey.
