Jersey reforms tax affairs to grant 'equal rights' to all

The establishing of "joint responsibility" is part of gradual shift towards "independent taxation" from 2022

Married couples and those in civil partnerships in Jersey will be granted "equal rights" over tax affairs, following a change to the law.

Currently, women in heterosexual relationships or the younger partner in same-sex relationships must get permission to deal with tax matters.

The reforms will ensure joint responsibility for couples who file shared returns from the 2021 tax year.

The States approved the change by 40 votes to two, with two abstentions.

The law will introduce "equal rights of access" to information and ensure couples are jointly responsible for their income tax bill.

Couples will also have the right to file for separate assessment if they wish to keep their tax affairs independent.

'Interim move'

A report accompanying the legislation said: "For the first time, spouses and civil partners will share equal rights and responsibilities for the couple's tax affairs."

Minister for Treasury and Resources Susie Pinel described it as a "interim move" in a gradual shift towards "independent taxation".

Further reform to shift towards this goal will be conducted in a "phased manner" from 2022, she added.

Jersey's Treasury and Exchequer found the changes could lead to a net figure of around 5,000 couples paying more tax than they would have, if a staggered approach was not taken.

Mrs Pinel said the change was not intended to adversely affect couples, but rather to bring in a "fair and equal" principles to current "archaic" law.

"We have to take the time to address these concerns... so that absolutely nobody is negatively financially affected by this."

Before 2003, married women could not be assessed separately and subsequent reform still required permission to be granted by husbands to be treated individually.

From 2013 income tax forms allowed husbands to grant permission to their wives to deal with their personal tax affairs.