Income Tax (Amendment – Stage 1 of Independent Taxation) (Jersey) Law 2021

Income Tax (Amendment – Stage 1 of Independent Taxation) (Jersey) Law 2021 Contents Article 1 Income Tax (Jersey) Law 1961 amended . 3 2 Article 3 (general provisions as to interpretation) amended from 1st January 2022 3 3 Article 3 (general provisions as to interpretation) amended from 1st January 2023 4 4 Article 18 (delivery of list by persons in receipt of taxable income belonging to others) amended 4 5 Article 41H (requirement to provide information when entering or resuming employment or sub-contracting) amended . 4 6 Article 92A (threshold for exemption for income tax) amended . 4 7 Article 92B (increase in exemption threshold for child day care) amended . 5 8 Part 16 heading amended . 5 9 New Article 120A (application of this Part) inserted . 5 10 New Article 121C (election by spouses for independent taxation from 2022) inserted 5 11 New Article 121D (election by spouses for independent taxation from 2023) inserted 5 12 Part 16A heading amended . 6 13 New Article 122AB (application of this Part) inserted . 6 14 New Article 122DA (election by civil partners for independent taxation from 2022) inserted 6 15 New Article 122DB (election by civil partners for independent taxation from 2023) inserted 6 16 Citation and commencement . 7 Income Tax (Amendment – Stage 1 of Independent Taxation) (Jersey) Law 2021 A LAW to amend the Income Tax (Jersey) Law 1961 to provide for the first stage of independent taxation for people who are married or in a civil partnership. Adopted by the States 15th September 2021 Sanctioned by Order of Her Majesty in Council 15th December 2021 Registered by the Royal Court 17th December 2021 Coming into force in accordance with Article 16 THE STATES , subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law – 1 In come Tax (Jersey) Law 1961 amended This Law amends the Income Tax (Jersey) Law 1961 . 2 Article 3 (general provisions as to interpretation) amended from 1st January 2022 ( 1 ) In Article 3, in the definition “earned income”, paragraph (a), – ( a ) after “spouse” there is inserted “(other than an independently taxed spouse)” in both places; ( b ) after “civil partner” there is inserted “(other than an independently taxed civil partner)” in both places. ( 2 ) In Article 3, after the definition “income, profits or gains distributed” there is inserted – “ “ independently taxed civil partner ” means a person who is in a civil partnership and to whom one or more of the following applies – ( a ) the civil partnership was formed after 31st December 2021; ( b ) the person or their civil partner became resident in Jersey after 31st December 2021; ( c ) the person and their civil partner have elected under Article 122DA to be independently taxed;”; “ independently taxed spouse ” means a person who is married and to whom one or more of the following applies – ( a ) the marriage took place after 31st December 2021; ( b ) the person or their spouse became resident in Jersey after 31st December 2021; ( c ) the person and their spouse have elected under Article 121C to be independently taxed;”. 3 Article 3 (general provisions as to interpretation) amended from 1st January 2023 ( 1 ) In Article 3, definition “independently taxed civil partner”, after “elected under Article 122DA” there is inserted “or 122DB”. ( 2 ) In Article 3, definition “independently taxed spouse”, after “elected under Article 121C” there is inserted “or 121D”. 4 Article 18 (delivery of list by persons in receipt of taxable income belonging to others) amended For Article 18(1)(c) there is substituted – “( c ) the name and address of every person who owns each source and, for each person, whether the person is – ( i ) of full age, ( ii ) resident in Jersey, ( iii ) incapacitated, and ( iv ) married or in a civil partnership.”. 5 Article 41H (requirement to provide information when entering or resuming employment or sub-contracting) amended ( 1 ) In Article 41H(3), after “If the person is married or in a civil partnership” there is inserted “and the spouses or civil partners are not independently taxed”. ( 2 ) After Article 41H(3) there is inserted – “( 3A ) If the person is married or in a civil partnership and the spouses or civil partners are independently taxed, the person must also notify the Comptroller of – ( a ) the date of the marriage or formation of the civil partnership; and ( b ) the information required by paragraph (2)(a) to (e) in respect of their spouse or civil partner.”. 6 Article 92A (threshold for exemption for income tax) amended ( 1 ) In Article 92A(2), for “where an individual proves” there is substituted “where an individual who is not an independently taxed spouse proves”. ( 2 ) In Article 92A(2A), for “where a civil partner A proves” there is substituted “where an individual who is not an independently taxed civil partner proves”. 7 Article 92B (increase in exemption threshold for child day care) amended After Article 92B(2) there is inserted – “( 2A ) An amount apportioned to an individual under paragraph (2) must not exceed the amount that the individual paid for child care for the qualifying child for the year of assessment.”. 8 Part 16 heading amended For the heading to Part 16 there is substituted – “Special provisions for certain married people”. 9 New Article 120A (application of this Part) inserted After the heading to Part 16 there is inserted – “ 120A Application of this Part This Part applies to married people, other than independently taxed spouses.”. 10 New Article 121C (election by spouses for independent taxation from 2022) inserted After Article 121B there is inserted – “ 121C Election by spouses for independent taxation from 2022 ( 1 ) This Article applies to people who are spouses who, because of an election made under Article 121A, have been (or will be) separately assessed for the 2020 year of assessment. ( 2 ) People to whom this Article applies may elect to be independently taxed by, no later than 29th October 2021, giving notice in writing to the Comptroller signed by both spouses. ( 3 ) An election under paragraph (2) has the effect that both spouses are independently taxed spouses for the 2022 year of assessment and for all subsequent years of assessment. ( 4 ) An election cannot be revoked.”. 11 New Article 121D (election by spouses for independent taxation from 2023) inserted After Article 121C there is inserted – “121D Election by spouses for independent taxation from 2023 ( 1 ) Spouses may elect to be independently taxed by, no later than 29th July 2022, 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 2023 year of assessment and for all subsequent years of assessment. ( 3 ) An election cannot be revoked.”. 12 Part 16A heading amended For the heading to Part 16A there is substituted – “Special provisions for certain civil partners”. 13 New Article 122AB (application of this Part) inserted After the heading to Part 16A there is inserted – “ 122AB Application of this Part This Part applies to people in civil partnerships, other than independently taxed civil partners.”. 14 New Article 122DA (election by civil partners for independent taxation from 2022) inserted After Article 122D there is inserted – “ 122DA Election by civil partners for independent taxation from 2022 ( 1 ) This Article applies to people who are civil partners who, because of an election made under Article 122C, have been (or will be) separately assessed for the 2020 year of assessment. ( 2 ) People to whom this Article applies may elect to be independently taxed by, no later than 29th October 2021, giving notice in writing to the Comptroller signed by both civil partners. ( 3 ) An election under paragraph (2) has the effect that both civil partners are independently taxed civil partners for the 2022 year of assessment and for all subsequent years of assessment. ( 4 ) An election cannot be revoked.”. 15 New Article 122DB (election by civil partners for independent taxation from 2023) inserted After Article 122DA there is inserted – “122DB Election by civil partners for independent taxation from 2023 ( 1 ) Civil partners may elect to be independently taxed by, no later than 29th July 2022, 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 2023 year of assessment and for all subsequent years of assessment. ( 3 ) An election cannot be revoked.”. 16 Citation and commencement ( 1 ) This Law may be cited as the Income Tax (Amendment – Stage 1 of Independent Taxation) (Jersey) Law 2021. ( 2) This Law, except for Articles 3, 10 and 14, comes into force on 1st January 2022. (3) Article 3 comes into force on 1st January 2023. (4) Articles 10 and 14 come into force 7 days after this Law is registered.