Jersey couples could be taxed separately from 2022

The change would be the biggest reform of the island's personal tax system since income tax was introduced in 1928

Couples in Jersey could be taxed independently rather than as a "single unit" from next year, the island's government has announced.

Currently married couples, civil partners and same-sex couples are assessed for tax as a single unit and complete one tax return.

With the proposed change, both partners would be responsible for their own tax affairs.

The system would change from 2022 under proposals to be lodged in the autumn.

Treasury Minister Deputy Susie Pinel said: "On International Women's Day 2019, I announced my intention to modernise our archaic tax system and ensure that married women, same-sex spouses and civil partners are treated equally.

"I'm proud to confirm that I will be lodging a proposal with the States Assembly this autumn, to introduce this reform from 1 January 2022."

'Plan for changes'

Under the current system, in opposite-sex couples the man is deemed as the primary taxpayer and legally responsible for the payment of tax and in same-sex couples and those in civil partnerships the eldest person usually is.

Until this year, only the primary taxpayer was able to speak to Revenue Jersey about their joint tax affairs.

Deputy Pinel has proposed a phased introduction of independent taxation to make sure couples can "plan for the changes".

The new method would become mandatory for people who are single on or after 1 January 2022, and for all new arrivals to Jersey after this date, whatever their marital status.

"For these people, there would be no material difference in the way they currently pay tax, as most jurisdictions already have a form of independent taxation," a government statement said.

"From January 2022 about 700 married couples and civil partnerships will have the option to move to independent taxation," it added.

The following year, more islanders will move to the new tax system in phases, with more details to be released later in the year.