In her first budget, Treasury Minister Susie Pinel outlined plans to introduce new tax reliefs for retirees living abroad who receive Jersey-sourced income, after they lost their entitlement to marginal relief two years ago leading to several cases of hardship.
A number of former residents have complained that they have lost thousands of pounds of their savings and their financial planning for retirement was severely disrupted.
New forms of relief have been proposed to take effect in 2020 by Deputy Pinel, under which non-residents with a worldwide income less than £15,400 would be exempt from taxation and those earning more could apply for ‘reduced rate relief’.
So far eight pensioners living abroad have written to the Corporate Services Scrutiny Panel, which is reviewing the draft budget, to voice their concerns about Deputy Pinel’s plans. A number of them complained about the length of time it will take the reforms to be introduced at a time when they are already suffering hardship.
Ex-resident Peter Fryer wrote: ‘I am relieved that the Budget proposals state that some kind of marginal relief is to be reinstated in 2019 [and applied in 2020].
‘Hopefully this terrible wrong will be put right.
‘However, I am dismayed that it will only be from 2019 and not backdated. We will therefore have to suffer the continued hardship of having to pay 20 per cent tax, with no marginal relief whatsoever, continuing our hardship for another year.’
Louise Haskins’ letter says that she has been ‘worried sick’ for two years after losing the tax break in 2016.
Louis and Theresa Brindle said that they had ‘struggled’ to make ends meet because they had been required to pay 20% on their income after paying nothing previously.
Bob Dale, Martin and Theresa Hughes and Roger Bara all called for those who have been impacted over the last two years to be reimbursed by the States.
‘Even though the Treasury acknowledges the error of their ways by reintroducing these reliefs for non-residents, there is no compensation offered to those who have been overcharged and overpaid during the three year hiatus,’ wrote Mr Hughes.
Patricia Lewis called for her tax liability to be retrospectively ‘reassessed’ for 2016, 2017 and 2018 once the new measures are approved.
