ISLANDERS who rent a room in their home to lodgers could receive a tax exemption under a new ministerial proposal designed to provide extra accommodation to seasonal workers.
In an amendment to the Government Plan, the Council of Ministers has said the new ‘rent-a-room’ tax relief would reduce the number of under-occupied homes and enable homeowners to retain ‘extra income at a time when some households are struggling’.
A number of industries have experienced staff shortages, with a lack of suitable and affordable accommodation regularly cited as one of the key barriers to attracting employees to the Island.
In the amendment, ministers state: ‘The relief would exempt relevant lodger income of £10,000 or less from income tax. If the relevant income is above the £10,000 limit, all lodger income would be taxable but eligible for relief under the existing concession.’
The relief would not be eligible to those renting rooms to ‘connected persons’ such as in instances of a parent receiving rent from an adult child living in the family home.
The 2021 Census found that around one-quarter of households were under-occupying their accommodation.
Meanwhile, a temporary ban on super-wealthy immigrants, a new school at Gas Place and more assisted-home-ownership schemes could all be introduced as part of a raft of amendments to the government’s spending plans.
The States Assembly is due to debate the Government Plan next month, which will set out public spending proposals for the next four years.
Under ministerial proposals, an additional £61 million would be invested in the Island’s key public services during 2023, alcohol duty would be frozen, but is being offset by an inflation-busting hike in tobacco duty.
Vehicle emissions duty, which taxes newly imported cars according to their engine size, would also be increased.
And, with the debate just two weeks away, yesterday saw a flurry of late amendments.
Deputy Sam Mézec is calling for the High Value Residency scheme to be closed to new applicants next year while the government continues to review its policy on accepting super-wealthy immigrants. (Full story: Page 2)
And Deputy Max Andrews is requesting that stamp duty on property sales over £2.5m should be ringfenced to provide support to Islanders looking to get on the property ladder. (Full story: Page 6)
Meanwhile, ministers have set out proposals for a new primary school in Gas Place which would be located on the former Jersey Gas land and incorporated into an extended Millennium Town Park. The amendment, from the Council of Ministers, includes plans for two community open spaces in the grounds of Springfield School and Le Bas Centre. (Full story: Page 4)
