A British home with a continental flavour
Since 1204 Jersey has been a separate and distinct jurisdiction. The Island has its own parliament, legal and tax systems. Jersey is a UK protectorate and not part of either the UK or EU. Over a number of years the Island has welcomed a number of HNWs. The Jersey government is very keen to encourage HNW immigration and has appointed a Director of High Value Housing to oversee and facilitate the process.
For High Net Worth Individuals (HNWs) looking to relocate, Jersey is an attractive choice. Moving to the Island is straightforward and the diverse community welcomes all newcomers into the heart of Island life.
If you are looking to move to Jersey, we can provide an experienced and responsive team. Our relationship with all the key individuals help make the application process seamless and maximise opportunities.
We understand that the decision to move to Jersey is for many a lifestyle choice. Our brochure outlines the usual factors you will want to consider, gives an overview of the relocation process and the ways we can work with you to make moving to Jersey as beneficial and simple as possible.
If you want to discuss any aspects of your move, please contact us.
The right tax climate
From a tax perspective Jersey is particularly attractive because there are:
- No capital taxes
- No wealth taxes
- No gift taxes
- No inheritance taxes
Only income is subject to tax. The general rate of income tax is 20%. For HNWs that have permission under the high value residency rules there are special rates of tax:
- All Jersey rental income is taxed at 20%
- For all other income, the first £625k is taxed at 20% and the balance at 1%
It is possible to undertake structuring which reduces the Jersey income tax liability. For the structuring to be effective, it is important that it is undertaken before the Jersey authorities are approached and residence assumed. From a tax perspective, the Jersey housing authorities will usually accept high value residency housing applications showing a Jersey income tax liability of at least £125k.
As part of the high value residency housing application process, a clearance is obtained from the Jersey income tax authorities. As part of this clearance, assets, income streams and structures are disclosed. The clearance provides certainty of tax treatment.
The sooner in the process tax advice is taken, the more effective the tax planning in respect of both the outbound and inbound issues is likely to be.
There are potential Jersey tax opportunities for any individual moving to the Island. To maximise the opportunities it is important that financial affairs are reviewed and tax advice taken before any active steps to move to the Island have been undertaken.
The process
The Island authorities undertake reputational and financial due diligence on individuals. This process is not onerous or protracted. Typically, the whole process from preparing the application to getting final approval (outlined overleaf) usually takes between six and eight weeks.
When circumstances dictate and the required information is quickly assembled this timescale can be reduced.
The application for high value residency is made to the Housing department.
There are four distinct phases to the process
How PwC can help
Our team of locally based personal tax specialists can assist with the process as follows:
- Assembling and preparing the background information required for the high value residency application
- Reviewing financial affairs and structures and recommending strategies for mitigating adverse tax consequences and optimising tax opportunities arising
- Preparing the clearance application to the Jersey income tax authorities in an easily understood form
- Preparing the high value residency application
- Liaising with other intermediaries including lawyers, bankers and estate agents
- Providing advice on breaking UK residence for tax purposes and maintaining non residence
- Advising on UK inheritance tax and capital gains tax
We have extensive experience of assisting individuals and corporate entities relocating to Jersey. The requirements of each project vary depending upon circumstances, but the need for good project management, sound technical analysis and practical tax advice remain constant.
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