Jersey is a separate and distinct jurisdiction. The Island has its own parliament, legal and tax systems. The Island is a UK protectorate and not part of either the UK or EU.
For High Net Worth Individuals (HNWs) the Island is not difficult to move to. The process is straightforward and quick.
Over a number of years the Island has welcomed many HNWs and the Island is an attractive location for HNWs for the following reasons:
Due to the relatively small size of the Island there are special housing rules designed to control population.
The standard rate of income tax is 20%, however there is a special and beneficial tax regime for incoming HNWs. Jersey rental income is always taxable at 20%, but for other income the first £625k is taxable at 20% and the balance at 1%. Through pre-immigration structuring it is possible to effectively cap a HNW’s Jersey income tax liability at £125k.
On moving to the Island it is important that pre immigration tax advice is taken to ensure that any necessary structuring is undertaken and all opportunities are optimised. It is important that advice is taken regarding the home jurisdiction. We have advised and assisted a number of individuals on breaking UK tax residence and maintaining non residence.
From a local tax perspective, part of the process involves discussions with the Islands’ authorities and the relationships we have built up over a number of years with the authorities are invaluable in ensuring a positive outcome for HNWs.
PwC have significant experience of assisting individuals and their businesses relocate to the Islands. Over the years we have dealt with the tax affairs of HNWs and their structures encompassing not only Jersey tax implications but also UK and International tax issues.