Finance (2023 Budget) (Jersey) Law 2023

Finance (2023 Budget) (Jersey) Law 2023 Contents Article Part 1 5 Standard rate of income tax set for 2023 5 1 Standard rate of income tax for 2023 . 5 Part 2 5 Income tax (Jersey) Law 1961 amended 5 Introductory 2 Amendment of the Income Tax (Jersey) Law 1961 . 5 Amendment of interpretation provision 3 Article 3 (general provisions as to interpretation) amended . 6 Returns 4 Article 17A (penalty for late delivery of return) amended . 6 Collection 5 Article 41C (calculation of rate) amended . 6 6 Article 41CA (revised rates: initiated by Comptroller) amended . 6 7 Article 41F (exemption certificate) amended . 6 8 Article 41I (late payment surcharge) amended . 6 9 Article 49B (general provision for collection of long-term care contributions) amended 7 10 Schedule 1A (collection of long-term care contributions) amended . 7 Provisions relating to Schedule D 11 Article 65 (general provisions as to period of computation for offices, employments and pensions) amended . 8 12 Article 78 (basis of computation under Case III) amended . 8 13 Article 80 (basis of computation under Cases IV and V) amended . 8 14 Schedule 2 (benefits: exemptions) amended . 8 15 Schedule 3 (valuation of benefit) amended . 9 Capital Allowances 16 Article 106C (miscellaneous and general) amended . 10 Exemptions 17 Article 118B (exemption of certain income, profits or gains of a non-resident) amended 10 18 Article 120AA (rent-a-room arrangements) inserted . 11 Independent taxation 19 Article 121E (election by spouses for independent taxation from 2024) inserted 12 20 Article 122DC (election by civil partners for independent taxation from 2024) inserted 12 Partnerships 21 Article 3 (general provisions as to interpretation) amended . 12 22 Article 17A (penalty for late delivery of return) amended . 13 23 Article 20E (returns of information by partnerships) inserted . 13 24 Article 21 (form and manner of returns) amended . 14 25 Article 21B (offences) amended . 14 26 Article 55 (persons chargeable under Schedule A) amended . 14 27 Article 74 (partnership statements and assessments) substituted . 14 28 Article 75 (changes of proprietor) amended . 15 29 Article 75A (change of partner) inserted . 15 30 Article 76 (partnerships controlled abroad) deleted . 15 31 Article 76A (limited partnerships) amended . 15 32 Article 76B (incorporated limited partnerships) amended . 16 33 Article 76C (separate limited partnerships) amended . 16 34 Article 76D (limited liability partnerships) amended . 16 35 Article 76E (foreign limited liability partnerships) substituted . 16 36 Article 106A (allowances and balancing adjustments) amended . 16 37 Article 106AB (special provisions if assets transferred to successor to trade) amended 17 Part 3 17 Customs and Excise (Jersey) Law 1999 amended 17 38 Customs and Excise (Jersey) Law 1999 amended . 17 39 Article 68 (review of decisions) amended . 17 40 Article 68A (appeal to Commissioners) inserted . 17 41 Excise duty: tobacco . 18 42 Excise duty: motor vehicles - general 18 Part 4 19 Goods and Services Tax (Jersey) Law 2007 amended 19 43 Goods and Services Tax (Jersey) Law 2007 amended . 19 44 Article 23 (where goods supplied) amended . 19 45 Article 26 (when goods supplied) amended . 20 46 Article 60 (entities eligible for listing as international services entities) amended 20 Part 5 20 Stamp Duties and Fees (Jersey) Law 1998 amended 20 47 Stamp Duties and Fees (Jersey) Law 1998 amended . 20 48 Article 1 (interpretation) amended . 21 49 Article 8A (statements of information) inserted . 21 50 Article 11 (offences) amended . 21 51 Schedule 1 (judicial fees) amended . 22 Part 6 24 Taxation (Land Transactions) (Jersey) Law 2009 amended 24 52 Taxation (Land Transactions) (Jersey) Law 2009 amended . 24 53 Article 5 (delivery of statements in pursuance of notices) amended . 24 54 Schedule (value of transaction and rate of LTT applicable) amended . 24 Part 7 26 Taxation (Enveloped Property Transactions) (Jersey) Law 2022 amended 26 55 Taxation (Enveloped Property Transactions) (Jersey) Law 2022 amended . 26 56 Article 7 (calculation of charge to tax) amended . 26 57 Schedule 2 (calculation of variable element of tax) amended . 27 Part 8 28 High value residents 28 58 Income Tax (Prescribed Limit and Rate) (Jersey) Regulations 2013 amended . 28 Part 9 28 Other amendments and closing provisions 28 59 Social Security (Jersey) Law 1974 amended . 28 60 Taxation (Partnerships – Economic Substance) (Jersey) Law 2021 amended . 29 61 Article 36 and Article 37(4) of the Finance (2022 Budget) (Jersey) Law 2022 repealed 29 62 Goods and Services Tax (International Services Entities) (Jersey) Regulations 2008 amended 29 63 Taxation (Land Transactions) (LTT Statements and Receipts) (Jersey) Order 2019 amended 30 64 Taxation (Enveloped Property Transactions) (Statements) (Jersey) Order 2022 amended 30 65 Citation and commencement . 30 Finance (2023 Budget) (Jersey) Law 2023 A LAW to set the standard rate of income tax for 2023 and to implement parts of the government plan 2023-2026 by amending the Income Tax (Jersey) Law 1961 , the Customs and Excise (Jersey) Law 1999 , the Goods and Services Tax (Jersey) Law 2007 , the Stamp Duties and Fees (Jersey) Law 1998 , the Taxation (Land Transactions) (Jersey) Law 2009 , the Taxation (Enveloped Property Transactions) (Jersey) Law 2022 and other enactments. Adopted by the States 16th December 2022 Sanctioned by Order of His Majesty in Council 15th February 2023 Registered by the Royal Court 24th February 2023 Coming into force in accordance with Article 65 THE STATES , subject to the sanction of His Most Excellent Majesty in Council, have adopted the following Law – Part 1 Standard rate of income tax set for 2023 1 Standard rate of income tax for 2023 Income tax is levied and charged for the year 2023 at the standard rate of 20 pence in the pound, in accordance with and subject to the Income Tax (Jersey) Law 1961 . Part 2 Income tax (Jersey) Law 1961 amended Introductory 2 Amendment of the Income Tax (Jersey) Law 1961 This Part amends the Income Tax (Jersey) Law 1961 . Amendment of interpretation provision 3 Article 3 (general provisions as to interpretation) amended In Article 3 – ( a ) after the definition “international activities” there is inserted – “ “ liability to tax ” includes income chargeable in a year of assessment at a rate of 0%;”; ( b ) for the definition “officer” there is substituted – “ “ officer ” has the same meaning as in the Revenue Administration (Jersey) Law 2019 ;”. Returns 4 Article 17A (penalty for late delivery of return) amended In Article 17A(2)(a)(i) for “31st December” there is substituted “30th November”. Collection 5 Article 41C (calculation of rate) amended In Article 41C(2) for the entry relating to C there is substituted – “ C is the income tax chargeable for any year preceding the year to which the rate applies, less any amount of income tax already paid for that preceding year, and any costs recoverable in respect of unpaid income tax;”. 6 Article 41CA (revised rates: initiated by Comptroller) amended In Article 41CA(3) for the entry relating to C there is substituted – “C is the income tax chargeable for any year preceding the year to which the rate applies, less any amount of income tax already paid for that preceding year, and any costs recoverable in respect of unpaid income tax;”. 7 Article 41F (exemption certificate) amended In Article 41F(3) and (5)(a) for “this Law” there is substituted “the Revenue Laws, as defined in Article 1 of the Revenue Administration (Jersey) Law 2019 ,”. 8 Article 41I (late payment surcharge) amended In Article 41I, paragraph (3) is deleted. 9 Article 49B (general provision for collection of long-term care contributions) amended In Article 49B – ( a ) after paragraph (2) there is inserted – “( 2A ) An employer must deduct LTC contributions from payments of earnings made to an employee who is an insured person and must account for those deductions in accordance with paragraph 3 of Schedule 1A.”; ( b ) in paragraph (3) for “Articles 41B and 41E have effect” there is substituted “Article 41E has effect”. 10 Schedule 1A (collection of long-term care contributions) amended ( 1 ) In Schedule 1A, Part 1 – ( a ) in paragraph 2(5) (collection of long-term care contributions: combined effective rates) – ( i ) for the entry relating to C there is substituted – “C is the income tax chargeable for any year preceding the year to which the rate applies, less any amount of income tax already paid for that preceding year, and any costs recoverable in respect of unpaid income tax;”, ( ii ) for the entry relating to E there is substituted – “E is the employee’s total LTC contributions for any year preceding the year to which the rate applies, less any amount of contributions already paid for that preceding year, and any costs recoverable in respect of unpaid contributions;”; ( b ) after paragraph 2 there is inserted – “3 Duty of employer to deduct long-term care contributions ( 1 ) Articles 41B to Article 41CB apply to an employer in respect of an employee who is an insured person as if – ( a ) references in those provisions to an employee’s effective rate are references to the employee’s combined effective rate; ( b ) references to amounts of tax are references to amounts of tax and LTC contributions. ( 2 ) For the purpose of Article 41B(3), if an employer has not received a notice under Article 41CC specifying the employee’s combined effective rate, the employee’s combined effective rate is 22%.”. ( 2 ) In Schedule 1A, Part 2 the modified Article 41B is deleted. Provisions relating to Schedule D 11 Article 65 (general provisions as to period of computation for offices, employments and pensions) amended In Article 65(1) for “Subject to the provisions of Articles 66, 67 and 68, tax shall be” there is substituted “Tax is”. 12 Article 78 (basis of computation under Case III) amended In Article 78(1A)(a) for “capital profits” there is substituted “realised capital profits”. 13 Article 80 (basis of computation under Cases IV and V) amended In Article 80(3A) for “capital profits” there is substituted “realised capital profits”. 14 Schedule 2 (benefits: exemptions) amended In Schedule 2 – ( a ) in paragraph 4 (motor vehicles) after sub-paragraph (2) there is inserted – “( 3 ) For the purposes of this paragraph and paragraph 1 of Schedule 3, “motor vehicle” does not include an electrically assisted pedal cycle within the meaning of Article 2 of the Pedal Cycles (Jersey) Order 1998 .”. ( b ) after paragraph 18 (incidental benefits) there is inserted – “19 Pedal cycles ( 1 ) There shall be left out of account pedal cycles provided and used – ( a ) for travel by the office holder or employee between that person’s place of residence and place of work; or ( b ) in the performance of the office holder’s or employee’s duties. ( 2 ) “Pedal cycle” has the same meaning as in the Road Traffic (Jersey) Law 1956 and includes an electrically assisted pedal cycle within the meaning of Article 2 of the Pedal Cycles (Jersey) Order 1998 . 20 Bus passes There shall be left out of account any pass or prepaid card provided for use on buses in Jersey – ( a ) for travel by the office holder or employee between that person’s place of residence and place of work; or ( b ) in the performance of the office holder’s or employee’s duties.”. ( c ) paragraph 19 is renumbered as paragraph 21. 15 Schedule 3 (valuation of benefit) amended In Schedule 3 – ( a ) in paragraph 1 (motor vehicles) for sub-paragraph (2) there is substituted – “( 2 ) For the purposes of this paragraph, the value of a motor vehicle owned by the employer is – ( a ) where the benefit is first made available to the employee or office holder in the year the vehicle is acquired by the employer or the following year, the cost to the employer of acquiring the vehicle; and ( b ) where the benefit is first made available to the employee or office holder in any other year, the amount calculated as follows – ( i ) Step 1 Calculate an amount as follows – Where – N is the year (for example, for the year 2020 the amount is 2,020) when the benefit was first made available to the employee or office holder or; and E is the year when the motor vehicle was acquired by the employer, ( ii ) Step 2 Calculate the value as follows – Where – V is the value of the vehicle; C is the cost to the employer of acquiring the vehicle; ɑ is the amount calculated under Step 1.”. ( b ) in paragraph 2 (boats, aircraft and helicopters) for sub-paragraph (3) there is substituted – “( 3 ) For the purposes of sub-paragraphs (1) and (2), the value of a boat, aircraft or helicopter owned by the employer is – ( a ) where the benefit is first made available to the employee or office holder in the year the vehicle is acquired by the employer or the following year, the cost to the employer of acquiring the vehicle; and ( b ) where the benefit is first made available to the employee or office holder in any other year, the amount calculated as follows – ( i ) Step 1 Calculate an amount as follows – Where – N is the year (for example, for the year 2020 the amount is 2,020) when the benefit was first made available to the employee or office holder; and E is the year the boat, aircraft or helicopter was acquired by the employer, ( ii ) Step 2 Calculate the value as follows – Where – V is the value of the boat, aircraft or helicopter; C is the cost to the employer of acquiring the boat, aircraft or helicopter; ɑ is the amount calculated under Step 1.”. Capital Allowances 16 Article 106C (miscellaneous and general) amended For Article 106C(5) there is substituted – “( 5 ) In this Part “basis period” means, in the case of a person to or on whom an allowance or charge falls to be made in charging the profits of the person’s trade, the period on the profits of which tax for the year of assessment falls to be finally computed in respect of that trade.”. Exemptions 17 Article 118B (exemption of certain income, profits or gains of a non-resident) amended In Article 118B – ( a ) in paragraph (1) after sub-paragraph (h) there is inserted – “( i ) income distributions from a relevant trust.”; ( b ) for paragraph (2) there is substituted – “(2) In this Article – “ relevant trust ” means a trust which is managed by a trustee resident in Jersey and is – ( a ) a Jersey trust as defined in Article 1 of the Trusts (Jersey) Law 1984 ; or ( b ) a foreign trust as defined in Article 1 of that Law; “ purchased life annuity ” has the same meaning as in Article 132.”. 18 Article 120AA (rent-a-room arrangements) inserted After Article 120 (exemption of consular officers and employees) there is inserted – “120AA Exemption in respect of rent-a-room arrangements ( 1 ) Exemption from income tax is granted in respect of the gross receipts from an arrangement to which this Article applies (“a rent-a-room arrangement”) where the gross receipts from those arrangements are £10,000 or less in the year of assessment. ( 2 ) Where the gross receipts in the year of assessment exceed £10,000, the whole of those receipts are taxable in accordance with this Law. (3) A rent-a-room arrangement is an arrangement where – ( a ) a person provides a room in the dwelling that is that person’s main residence for rent to another person; ( b ) the person to whom the room is rented is – ( i ) aged 18 or over, and ( ii ) not a connected person within the meaning of Article 3A; ( c ) the premises in which the room is located are not required to be registered as a guest house under Article 5 of the Tourism (General Provisions) (Jersey) Order 1990 ; and ( d ) the room is not a residential unit within the meaning of Article 2 of the Residential Tenancy (Jersey) Law 2011 . ( 4 ) Despite paragraph (3)(b)(i) a room may be occupied by a person under the age of 18 if – ( a ) the person has been placed in the room by an appropriate organisation; or ( b ) it is rented to and occupied by a person aged 18 or over who has parental responsibility within the meaning of the Children (Jersey) Law 2002 for the person under the age of 18. ( 5 ) In paragraph (4) “an appropriate organisation” means an organisation that the Comptroller is satisfied has in place appropriate policies and procedures to safeguard people under the age of 18 when placing them in accommodation.”. Independent taxation 19 Article 121E (election by spouses for independent taxation from 2024) inserted After Article 121D, there is inserted – “121E Election by spouses for independent taxation from 2024 ( 1 ) Spouses may elect to be independently taxed for the 2024 year of assessment onwards by, no later than 31st July 2023, giving notice in writing to the Comptroller signed by both spouses. ( 2 ) An election has the effect that both spouses are independently taxed spouses for the 2024 year of assessment and for all subsequent years of assessment. ( 3 ) An election cannot be revoked.”. 20 Article 122DC (election by civil partners for independent taxation from 2024) inserted After Article 122DB, there is inserted – “122DC Election by civil partners for independent taxation from 2024 ( 1 ) Civil partners may elect to be independently taxed for the 2024 year of assessment onwards by, no later than 31st July 2023, giving notice in writing to the Comptroller signed by both civil partners. ( 2 ) An election has the effect that both civil partners are independently taxed civil partners for the 2024 year of assessment and for all subsequent years of assessment. ( 3 ) An election cannot be revoked.”. Partnerships 21 Article 3 (general provisions as to interpretation) amended In Article 3 – ( a ) after the definition “general notice” there is inserted – “ “ general partnership ” means a trade or profession carried on by 2 or more persons jointly and does not include – ( a ) a limited partnership as defined in Article 76A; ( b ) an incorporated limited partnership within the meaning of the Incorporated Limited Partnerships (Jersey) Law 2011 ; ( c ) a separate limited partnership within the meaning of the Separate Limited Partnerships (Jersey) Law 2011 ; ( d ) a limited liability partnership within the meaning of the Limited Liability Partnerships (Jersey) Law 2017 ; ( e ) a foreign limited liability partnership;”; ( b ) for the definition “partnership” there is substituted – “ “ partnership ” means – ( a ) a general partnership; ( b ) a limited partnership as defined in Article 76A; ( c ) an incorporated limited partnership within the meaning of the Incorporated Limited Partnerships (Jersey) Law 2011 ; ( d ) a separate limited partnership within the meaning of the Separate Limited Partnerships (Jersey) Law 2011 ; ( e ) a limited liability partnership within the meaning of the Limited Liability Partnerships (Jersey) Law 2017 ; ( f ) a foreign limited liability partnership approved by the Comptroller under Article 76E;”. 22 Article 17A (penalty for late delivery of return) amended In Article 17A – ( a ) in paragraph (2) after sub-paragraph (d) there is inserted – “( e ) in the case of a return under Article 20E, midnight on 30th November in the year following the year of assessment.”; ( b ) in paragraph (2B) after “20D” there is inserted “, 20E”; ( c ) in paragraph (12A) for “Article 16, 17, 20, 20A, 20B, 20C, 20D or 135C” there is substituted “Article 16, 17, 20, 20A, 20B, 20C, 20D, 20E or 135C, and includes a notification under Article 20E(1)”. 23 Article 20E (returns of information by partnerships) inserted After Article 20D there is inserted – “20E Returns of information by partnerships ( 1 ) The responsible partner of a partnership must notify the Comptroller whether the partnership is a relevant partnership by midnight on 30th November in the year following the year of assessment. ( 2 ) The responsible partner of a relevant partnership must prepare and deliver to the Comptroller a true, complete and correct return containing such information as the Comptroller may, by notice, reasonably require. ( 3 ) For the purposes of this Article, a “relevant partnership” is a partnership that has a source of income in the year of assessment which would, if amounting to profit or gain, give rise to any partner’s liability to tax in Jersey. ( 4 ) A collective investment vehicle is not a relevant partnership for the purposes of this Article. ( 5 ) For the purposes of this Article the “responsible partner” is a partner, who cannot be a limited partner, determined by the Comptroller to be the responsible partner. ( 6 ) In determining who the responsible partner is, the Comptroller must have regard to a nomination (if any) made by the partnership. ( 7 ) If the Comptroller determines that the responsible partner is a partner other than one nominated by the partnership the Comptroller must notify the partnership who the responsible partner is. ( 8 ) For the purposes of this Article “collective investment vehicle” means – ( a ) a collective investment fund within the meaning of Article 3 of the Collective Investment Funds (Jersey) Law 1988 ; ( b ) a fund that would be a collective investment fund within the meaning of Article 3 of the Collective Investment Funds (Jersey) Law 1988 except that the offer of units for subscription, sale or exchange is not an offer to the public; or ( c ) a fund that is – ( i ) not created for the purposes of securitisation or the repackaging of assets, and ( ii ) would be a collective investment fund except that it is prescribed not to be collective investment fund in an Order made under Article 3(7) of the Collective Investment Funds (Jersey) Law 1988 .”. 24 Article 21 (form and manner of returns) amended In Article 21(1) for sub-paragraph (j) there is substituted – “( j ) a return or a notification under Article 20E; ( k ) a notification under Article 123AA.”. 25 Article 21B (offences) amended In Article 21B(1) for sub-paragraph (k) there is substituted – “( k ) Article 20E (returns: partnerships); ( l ) Article 135C (secretary of LLC to provide returns).”. 26 Article 55 (persons chargeable under Schedule A) amended In Article 55(2) for “to 76C” there is substituted “to 76D”. 27 Article 74 (partnership statements and assessments) substituted For Article 74 there is substituted – "74 General partnerships ( 1 ) For the purposes of this Law, a trade or profession carried on by a general partnership with a view to profit or gain is to be treated as carried on in partnership by its partners and not by the general partnership as such. ( 2 ) Accordingly, the property of the general partnership is to be treated for those purposes as partnership property of the partners and not as property of the general partnership. ( 3 ) Subject to the provisions of this Article, the provisions of this Law apply to the profits and gains of a partner in a general partnership.”. 28 Article 75 (changes of proprietor) amended In Article 75 – ( a ) paragraph (1) is deleted; ( b ) in paragraph (2) for “paragraph (1)” there is substituted “Article 75A”. 29 Article 75A (change of partner) inserted After Article 75 there is inserted – “75A Change of partner ( 1 ) Where this Article applies a partnership’s trade, profession, business or vocation is deemed to have ceased and a new partnership’s trade, profession, business or vocation is deemed to commence. ( 2 ) This Article applies where there is a change in the partners of a partnership and that change represents a change of 50% or more – ( a ) in the entitlement of the assets in the partnership before the change in partners; or ( b ) in the collective voting entitlement of the partnership. ( 3 ) For the purposes of Article 106A, the basis period ends on the date that the partnership is deemed to have ceased and a new basis period commences on the date the partnership is deemed to have commenced.”. 30 Article 76 (partnerships controlled abroad) deleted Article 76 is deleted. 31 Article 76A (limited partnerships) amended In Article 76A – ( a ) for paragraph (3) there is substituted – “( 3 ) For the purposes of this Law, a trade, profession, business or vocation carried on by a limited partnership is to be treated as carried on in partnership by its partners and not by the limited partnership as such. ( 3A ) Accordingly, the property of the limited partnership is to be treated for those purposes as partnership property of the partners and not as property of the limited partnership.”; ( b ) paragraph (5) is deleted. 32 Article 76B (incorporated limited partnerships) amended In Article 76B paragraphs (5) and (7) are deleted. 33 Article 76C (separate limited partnerships) amended In Article 76C paragraphs (5) and (7) are deleted. 34 Article 76D (limited liability partnerships) amended In Article 76D paragraphs (5), (7), (8) and (9) are deleted. 35 Article 76E (foreign limited liability partnerships) substituted For paragraphs (1) to (10) of Article 76E there is substituted – “( 1 ) Where the Comptroller approves a foreign limited liability partnership, the partnership is treated as a limited liability partnership registered under Article 18 of the Limited Liability Partnerships (Jersey) Law 2017 for the purposes of this Law and Article 76D applies to it . ( 2 ) The Comptroller may approve legislation made in another jurisdiction (“approved legislation”) under which limited liability partnerships are or may be established. ( 3 ) The Comptroller, upon application by the partnership – ( a ) may approve a specific foreign limited liability partnership; and ( b ) must approve a foreign limited liability partnership established under approved legislation. ( 4 ) At the start of each year, the Comptroller must publish a list of approved legislation and must, as soon as practicable, update the list during that year.”. 36 Article 106A (allowances and balancing adjustments) amended In Article 106A – ( a ) in paragraph (6) before “The disposal value” there is inserted “Subject to paragraph (6A),”; ( b ) after paragraph (6) there is inserted – “( 6A ) Where a partnership is deemed to have ceased under Article 75A, the deemed disposal value of the plant and machinery is – ( a ) the price which it would fetch if sold on the open market; or ( b ) if the price which it would fetch if sold on the open market exceeds the capital expenditure incurred by the partnership on the provision of the machinery or plant for the purposes of the partnership, the value of capital expenditure. ( 6B ) Where a partnership is deemed to have commenced under Article 75A it is deemed to have acquired that plant and machinery at the same value it is deemed to have been disposed of under paragraph (6A).”. 37 Article 106AB (special provisions if assets transferred to successor to trade) amended In Article 106AB – ( a ) in paragraph (1)(a) “in the proviso to Article 75(1) or” is deleted; ( b ) after paragraph (1) there is inserted – “( 1A ) This Article also applies if a partner (the “successor”) succeeds a partner (the “predecessor”) in a partnership and Article 75A does not apply.”. Part 3 Customs and Excise (Jersey) Law 1999 amended 38 Customs and Excise (Jersey) Law 1999 amended This Part amends the Customs and Excise (Jersey) Law 1999 . 39 Article 68 (review of decisions) amended In Article 68 – ( a ) paragraph (1)(a)(i) is deleted; ( b ) in paragraph (5), sub-paragraphs (a) and (b) are deleted; ( c ) paragraph (6) is deleted. 40 Article 68A (appeal to Commissioners) inserted After Article 68 there is inserted – “68A Appeal to Commissioners ( 1 ) Any person aggrieved by a decision made by the Agent of the Impôts to which this Article applies may appeal to the Commissioners by notifying the Agent of the Impôts in writing within one month of such decision being communicated. ( 2 ) This Article applies to a decision made by the Agent of the Impôts in relation to any decision of an officer which – ( a ) affects the liability of any person to pay any duty; ( b ) affects the eligibility of any person from relief from or repayment of any duty; or (c) imposes or applies any conditions, limitations, restrictions, prohibitions or other requirements under Article 5(1), 39 or 41. ( 3 ) Part 6 of the Income Tax Law applies, with the necessary modifications, to an appeal under this Article as if it were an appeal under that Law against an assessment. ( 4 ) Where an appeal is made under paragraph (1), the decision being appealed is not suspended pending the final determination or withdrawal of the appeal. ( 5 ) In this Article “Commissioners” means a Commission of Appeal constituted under Article 5 of the Revenue Administration (Jersey) Law 2019 .”. 41 Excise duty: tobacco In Schedule 1, Part 2 for the table in paragraph 6 there is substituted – “Type of tobacco Rate of excise duty per kilogramme (£) (a) unprocessed tobacco 531.75 (b) cigars 609.24 (c) cigarettes 696.54 (d) hand-rolling tobacco 696.54 (e) processed tobacco other than types (b) to (d) 554.12”. 42 Excise duty: motor vehicles - general In Schedule 1, Part 2 for paragraph 8(4) and (5) there is substituted – “( 4 ) For motor vehicles (other than commercial vehicles) that have an established CO 2 mass emission figure, vehicle emissions duty is charged at the following rates for the year in which it is payable – Established CO 2 mass emission figure (g) Rate for 2023 (£) 0-50 0 51-75 73.00 76-100 218.00 101-125 383.00 126-150 621.00 151-175 1,188.00 176-200 3,500.00 201 or more 6,105.00 ( 5 ) For motor vehicles (other than commercial vehicles) that do not have an established CO 2 mass emission figure, vehicle emissions duty is charged at the following rates for the year in which it is payable – Cylinder capacity of engine (cm 3 ) Rate for 2023 (£) 500 or less 0 501-1400 291.00 1401-1800 515.00 1801-2000 740.00 2001-2500 1,122.00 2501-3000 1,848.00 3001-3500 3,500.00 3501 or more 6,105.00”. Part 4 Goods and Services Tax (Jersey) Law 2007 amended 43 Goods and Services Tax (Jersey) Law 2007 amended This Part amends the Goods and Services Tax (Jersey) Law 2007 . 44 Article 23 (where goods supplied) amended For Article 23(3) there is substituted – “( 3 ) If the supply of goods involves their removal to Jersey – ( a ) the goods are treated as supplied in Jersey if either Condition A or Condition B is met; and ( b ) in any other case, the goods are treated as supplied outside Jersey. ( 3A ) Condition A is met if – ( a ) the goods are supplied by a person (“P”) in the course or furtherance of a business; ( b ) P belongs in a country other than Jersey; and ( c ) the goods are supplied directly to an individual at an address in Jersey. ( 3B ) Condition A is also met if – ( a ) Paragraph (3A) applies to P; and ( b ) P supplies goods directly to a person or business in Jersey that is registered or liable to be registered for GST. ( 3C ) Condition B is met if the supply is treated, under Article 21A, as being made by the operator of an online marketplace.”. 45 Article 26 (when goods supplied) amended In Article 26 after paragraph (2) there is inserted – “( 3 ) In paragraph (1)(aa), the reference to the “sale contract” is a reference to the contract for the sale of the goods, entered into between – ( a ) the person supplying the goods (where Condition A in Article 23(3A) or (3B) is met) or the operator of the online marketplace (where Condition B in Article 23(3C) is met); and ( b ) the individual to whom the goods are supplied.”. 46 Article 60 (entities eligible for listing as international services entities) amended In Article 60 – ( a ) in paragraph (1) after sub-paragraph (g) there is inserted – “( ga ) a limited liability company that meets the conditions set out in paragraph (2);”; ( b ) in paragraph (2) for “or (d)” there is substituted “, (d) or (ga)”. ( c ) in paragraph (5) after sub-paragraph (c) there is inserted – “( d ) to a limited liability company is a reference to a limited liability company within the meaning of the Limited Liability Companies (Jersey) Law 2018 .”. Part 5 Stamp Duties and Fees (Jersey) Law 1998 amended 47 Stamp Duties and Fees (Jersey) Law 1998 amended This Part amends the Stamp Duties and Fees (Jersey) Law 1998 . 48 Article 1 (interpretation) amended In Article 1 – ( a ) after the definition “item” there is inserted – “ “main residence”, in relation to a relevant property, means the property that is occupied as the person’s main residence, whether or not it is in Jersey;”; ( b ) after the definition “net value” there is inserted – “ “relevant property” means a property that is a dwelling and is acquired for a purpose other than use as the main residence of the person to whom it is transferred , but does not include a dwelling acquired for the purpose of it forming part of the stock of a trade taxable under Article 51(1)(b) of the Income Tax (Jersey) Law 1961 ”. 49 Article 8A (statements of information) inserted After Article 8 there is inserted – “ 8A Relevant properties: statements of information ( 1 ) Where a chargeable document relates to a relevant contract, the document must be accompanied by statements by the person to whom the property is transferred indicating – ( a ) whether the property is a dwelling acquired for use as the main residence of that person; and ( b ) whether the property is a dwelling acquired for the purpose of it forming part of the stock of a trade taxable under Article 51(1)(b) of the Income Tax (Jersey) Law 1961 . ( 2 ) The statement must include a declaration by the person to whom the property is transferred that the statement is, to the best of that person’s knowledge and belief, true, complete and correct. ( 3 ) For the purposes of this Article a “relevant contract” is any transaction that falls within the following entries in item 13 in paragraph 3 of Schedule 1 – ( a ) entry (a); ( b ) entry (c); ( c ) entry (h); ( d ) entry (j); ( e ) entry (k); ( f ) entry (l).”. 50 Article 11 (offences) amended In Article 11 after paragraph (2) there is inserted – “(3) A person commits an offence and is liable to imprisonment for 6 months and to a fine of level 3 on the standard scale if that person makes a statement required under Article 8A which the person knows to be false or misleading in a material particular.”. 51 Schedule 1 (judicial fees) amended In Schedule 1 – ( a ) after paragraph 2 (bands relating to value in item 13) there is inserted – “2A Further bands relating to value in item 13 The table set out in this paragraph is to be read as included in each paragraph of item 13 where there is an entry “See table in paragraph 2A”. Item 13 Stamp Duty by Figure or Rate Chargeable Document Designated Officer (i) does not exceed £50,000 £3.50p each £100 or part of £100 subject to a minimum of £10 Contract Greffier (ii) exceeds £50,000 but does not exceed £300,000 £1,750 in respect of the first £50,000, plus £4.50 for each £100 or part of £100 in excess thereof Contract Greffier (iii) exceeds £300,000 but does not exceed £500,000 £13,000 in respect of the first £300,000, plus £5 for each £100 or part of £100 in excess thereof Contract Greffier (iv) exceeds £500,000 but does not exceed £700,000 £23,000 in respect of the first £500,000, plus £6 for each £100 or part of £100 in excess thereof Contract Greffier (v) exceeds £700,000 but does not exceed £1,000,000 £35,000 in respect of the first £700,000, plus £6.50 for each £100 or part of £100 in excess thereof Contract Greffier (vi) exceeds £1,000,000 but does not exceed £1,500,000 £54,500 in respect of the first £1,000,000 plus £7.50 for each £100 or part of £100 in excess thereof Contract Greffier (vii) exceeds £1,500,000 but does not exceed £2,000,000 £92,000 in respect of the first £1,500,000 plus £8.50 for each £100 or part of £100 in excess thereof Contract Greffier (viii) exceeds £2,000,000 but does not exceed £3,000,000 £134,500 in respect of the first £2,000,000 plus £10 for each £100 or part of £100 in excess thereof Contract Greffier (ix) exceeds £3,000,000 but does not exceed £6,000,000 £234,500 in respect of the first £3,000,000 plus £12.50 for each £100 or part of £100 in excess thereof Contract Greffier (x) exceeds £6,000,000 £609,500 in respect of the first £6,000,000 plus £13.50 for each £100 or part of £100 in excess thereof Contract Greffier”; ( b ) in item 13 of the table in paragraph 3– (i) in entries (a), (c), (h), (j), (k) and (l)(2) for “SEE TABLE IN PARAGRAPH 2” there is substituted – “IN RELATION TO PROPERTY THAT IS NOT RELEVANT PROPERTY SEE TABLE IN PARAGRAPH 2 IN RELATION TO PROPERTY THAT IS RELEVANT PROPERTY SEE TABLE IN PARAGRAPH 2A”, ( ii ) in entry (l)(1) for entries (i) and (ii) there is substituted – “(i) does not exceed £100,000 (A) In relation to property that is not relevant property, 50p for each £100 or part of £100 subject to a minimum of £10 (B) In relation to property that is relevant property, £3.50 for each £100 or part of £100 subject to a minimum of £10 Contract Greffier (ii) exceeds £100,000 (A) In relation to property that is not relevant property, £500 in respect of the first £100,000, plus 75p for each £100 or part of £100 in excess (B) In relation to property that is relevant property, £3,500 in respect of the first £100,000 plus £3.75 for each £100 or part of £100 in excess of that Contract Greffier”. Part 6 Taxation (Land Transactions) (Jersey) Law 2009 amended 52 Taxation (Land Transactions) (Jersey) Law 2009 amended This Part amends the Taxation (Land Transactions) (Jersey) Law 2009 . 53 Article 5 (delivery of statements in pursuance of notices) amended In Article 5 paragraph (5) is deleted. 54 Schedule (value of transaction and rate of LTT applicable) amended In the Schedule – ( a ) in the following provisions for “£80” there is substituted “£90” – ( i ) paragraph 2(1), ( ii ) paragraph 3, ( iii ) paragraph 3A(3)(a) and (b)(i), ( iv ) paragraph 3B(2), ( v ) paragraph (4)(3); ( b ) after paragraph 4 there is inserted – “ 5 Properties that are not main residences ( 1 ) This paragraph applies to a transaction described in Article 3(1)(a) or (b) which relates to land on which there is a dwelling that is acquired for a purpose other than use as the main residence of the person to whom the share is transferred, but does not apply if the dwelling is acquired for the purpose of it forming part of the stock of a trade taxable under Article 51(1)(b) of the 1961 Law. ( 2 ) In sub-paragraph (1) “main residence” means the property that is occupied as the person’s main residence whether or not it is in Jersey. ( 3 ) The rate of LTT applicable to a transaction to which this paragraph applies is £90 plus the amount found in accordance with the table – Value of the transaction Variable element of tax does not exceed £50,000 £3.50p each £100 or part of £100 subject to a minimum of £10 exceeds £50,000 but does not exceed £300,000 £1,750 in respect of the first £50,000, plus £4.50 for each £100 or part of £100 in excess thereof exceeds £300,000 but does not exceed £500,000 £13,000 in respect of the first £300,000, plus £5 for each £100 or part of £100 in excess thereof exceeds £500,000 but does not exceed £700,000 £23,000 in respect of the first £500,000, plus £6 for each £100 or part of £100 in excess thereof exceeds £700,000 but does not exceed £1,000,000 £35,000 in respect of the first £700,000, plus £6.50 for each £100 or part of £100 in excess thereof exceeds £1,000,000 but does not exceed £1,500,000 £54,500 in respect of the first £1,000,000 plus £7.50 for each £100 or part of £100 in excess thereof exceeds £1,500,000 but does not exceed £2,000,000 £92,000 in respect of the first £1,500,000 plus £8.50 for each £100 or part of £100 in excess thereof exceeds £2,000,000 but does not exceed £3,000,000 £134,500 in respect of the first £2,000,000 plus £10 for each £100 or part of £100 in excess thereof exceeds £3,000,000 but does not exceed £6,000,000 £234,500 in respect of the first £3,000,000 plus £12.50 for each £100 or part of £100 in excess thereof exceeds £6,000,000 £609,500 in respect of the first £6,000,000 plus £13.50 for each £100 or part of £100 in excess thereof”; ( c ) in the following provisions for “£60” there is substituted “£90” – ( i ) paragraph 6(2), ( ii ) paragraph 7(2); ( d ) in paragraph 8 for “£160” there is substituted “£180”; ( e ) in paragraph 9 for “£80” there is substituted “£90”. Part 7 Taxation (Enveloped Property Transactions) (Jersey) Law 2022 amended 55 Taxation (Enveloped Property Transactions) (Jersey) Law 2022 amended This Part amends the Taxation (Enveloped Property Transactions) (Jersey) Law 2022 . 56 Article 7 (calculation of charge to tax) amended In Article 7 – ( a ) in paragraph (1) for “£80” there is substituted “£90”; ( b ) in paragraph (3) – ( i ) in sub-paragraph (b) after “to which it relates” there is inserted “for properties to which the standard rate applies”, ( ii ) after sub-paragraph (b) there is inserted – “ ( c ) column 3 sets out the calculation of the variable element of the amount of tax in respect of the market value range to which it relates for properties to which the higher rate applies.”; ( c ) in paragraph (4) – ( i ) in sub-paragraph (b) after “to which it relates” there is inserted “for properties to which the standard rate applies”, ( ii ) after sub-paragraph (b) there is inserted – “( c ) column 3 sets out the calculation of the variable element of the amount of tax in respect of the market value range to which it relates for properties to which the higher rate applies .”; ( d ) after paragraph (4) there is inserted – “( 4A ) In paragraphs (3) and (4) – ( a ) the higher rate applies where a significant interest in an entity is acquired by a person, and that entity or its controlled entity own a property that is a dwelling acquired for a purpose other than use as the main residence of the person by whom the significant interest is acquired, but does not apply where the dwelling is acquired for the purpose of it forming part of the stock of a trade taxable under Article 51(1)(b) of the 1961 Law; and ( b ) the standard rate applies to a dwelling to which the higher rate does not apply, and in this paragraph “main residence” means the property that is occupied as the main residence whether or not it is in Jersey .”. 57 Schedule 2 (calculation of variable element of tax) amended In Schedule 2 for Table B and Table C there is substituted – “table b enveloped property used for domestic purposes (1) Market value of enveloped property (2) Variable element of tax (standard rate) (3) Variable element of tax (higher rate) Exceeding £500,000 but not exceeding £700,000 £8,000 in respect of the first £500,000 plus £3 for each £100 or part of £100 in excess of that £23,000 in respect of the first £500,000 plus £6 for each £100 or part of £100 in excess of that Exceeding £700,000 but not exceeding £1,000,000 £14,000 in respect of the first £700,000 plus £3.50 for each £100 or part of £100 in excess of that £35,000 in respect of the first £700,000 plus £6.50 for each £100 or part of £100 in excess of that Exceeding £1,000,000 but not exceeding £1,500,000 £24,500 in respect of the first £1,000,000 plus £4.50 for each £100 or part of £100 in excess of that £54,500 in respect of the first £1,000,000 plus £7.50 for each £100 or part of £100 in excess of that Exceeding £1,500,000 but not exceeding £2,000,000 £47,000 in respect of the first £1,500,000 plus £5.50 for each £100 or part of £100 in excess of that £92,000 in respect of the first £1,500,000 plus £8.50 for each £100 or part of £100 in excess of that Exceeding £2,000,000 but not exceeding £3,000,000 £74,500 in respect of the first £2,000,000 plus £7 for each £100 or part of £100 in excess of that £134,500 in respect of the first £2,000,000 plus £10 for each £100 or part of £100 in excess of that Exceeding £3,000,000 but not exceeding £6,000,000 £144,500 in respect of the first £3,000,000 plus £9.50 for each £100 or part of £100 in excess of that £234,500 in respect of the first £3,000,000 plus £12.50 for each £100 or part of £100 in excess of that Exceeding £6,000,000 £429,500 in respect of the first £6,000,000 plus £10.50 for each £100 or part of £100 in excess of that £609,500 in respect of the first £6,000,000 plus £13.50 for each £100 or part of £100 in excess of that Table c Enveloped property comprised in a contract lease (1) Market value of enveloped property (2) Variable element of tax (standard rate) (3) Variable element of tax (higher rate) Exceeding £500,000 in the case of property used for domestic purposes £3,500 in respect of the first £500,000, plus 75p for each £100 or part of £100 in excess of that £18,500 in respect of the first £500,000, plus £3.75 for each £100 or part of £100 in excess of that Exceeding £700,000 in the case of property used for non-domestic purposes £5,000 in respect of the first £700,000 plus 75p for each £100 or part of £100 in excess of that Not applicable”. Part 8 High value residents 58 Income Tax (Prescribed Limit and Rate) (Jersey) Regulations 2013 amended In Regulation 2 (prescribed limit) of the Income Tax (Prescribed Limit and Rate) (Jersey) Regulations 2013 in paragraphs (2) and (3A) for “£725,000” there is substituted “£850,000”. Part 9 Other amendments and closing provisions 59 Social Security (Jersey) Law 1974 amended For paragraph 4(2) (LTC contribution effective rate) of Schedule 1D to the Social Security (Jersey) Law 1974 there is substituted – “(2) The LTC contribution effective rate applicable in an employee’s case is determined in accordance with the following formula – Where – A is the contribution effective rate; B is the amount of the employee’s estimated LTC contribution for the year to which the rate applies, calculated in accordance with paragraph 2A; C is the employee’s total LTC contributions for any year preceding the year to which the rate applies, less any amount of contributions already paid for that preceding year, and any costs recoverable in respect of unpaid contributions; D is the amount of LTC contributions already paid for the year to which the rate applies; E is the estimated amount of income for which the employee is liable to be assessed under the 1961 Law for the year to which the rate applies; F is the estimated amount of income from which the employee is liable to allow the deduction of tax under the 1961 Law for the year to which the rate applies; G is the estimated amount of the employee’s allowable deductions under the 1961 Law (except for Article 131I of that Law) in relation to the employee’s earnings for the year to which the rate applies; and H is the estimated amount of the employee’s allowable deductions under Article 131I of the 1961 Law for the year to which the rate applies.”. 60 Taxation (Partnerships – Economic Substance) (Jersey) Law 2021 amended In Article 1 of the Taxation (Partnerships – Economic Substance) (Jersey) Law 2021 – ( a ) in the definition “limited liability partnership” after “ Limited Liability Partnerships (Jersey) Law 2017 ” there is inserted “or a foreign limited liability partnership approved by the Comptroller under Article 76E of the 1961 Law”; ( b ) in the definition “partnership” for sub-paragraph (f) there is substituted – “( f ) a general partnership within the meaning of Article 3 of the 1961 Law;”. 61 Article 36 and Article 37(4) of the Finance (2022 Budget) (Jersey) Law 2022 repealed Article 36 and Article 37(4) of the Finance (2022 Budget) (Jersey) Law 2022 are repealed. 62 Goods and Services Tax (International Services Entities) (Jersey) Regulations 2008 amended In Regulation 4(1)(g) of the Goods and Services Tax (International Services Entities) (Jersey) Regulations 2008 for “or limited liability partnership” there is substituted “, limited liability partnership or limited liability company”.

63 Taxation (Land Transactions) (LTT Statements and Receipts) (Jersey) Order 2019 amended In Article 2(2) (LTT statement for transactions under Article 3(1)(a) or (b) of the Law) of the Taxation (Land Transactions) (LTT Statements and Receipts) (Jersey) Order 2019 – ( a ) after sub-paragraph (d) there is inserted – “( da ) a declaration as to whether the property to which the share gives a right is being acquired for use as the main residence of the person to whom the share is transferred; ( db ) a declaration as to whether the property to which the share gives a right is a dwelling being acquired for the purpose of it forming part of the stock of a trade taxable under Article 51(1)(b) of the 1961 Law;”; ( b ) in sub-paragraph (e) after clause (ii) there is inserted – “( iia ) under paragraph 5 (properties that are not main residences),”. 64 Taxation (Enveloped Property Transactions) (Statements) (Jersey) Order 2022 amended In Article 2(4) (statement under Article 8 of the Law) of the Taxation (Enveloped Property Transactions) (Statements) (Jersey) Order 2022 after sub-paragraph (c) there is inserted – “( d ) whether the property is a dwelling that is being acquired for use as the main residence of the person by whom the significant interest is acquired. ( e ) whether the property is a dwelling being acquired for the purpose of it forming part of the stock of a trade taxable under Article 51(1)(b) of the 1961 Law of the person by whom the significant interest is acquired.”. 65 Citation and commencement ( 1 ) This Law may be cited as the Finance (2023 Budget) (Jersey) Law 2023. ( 2 ) Except for Articles 44, 45 and 59, this Law comes into force on 1st January 2023. ( 3 ) Articles 44, 45 and 59 come into force on 1st July 2023.