Jersey States to debate rules for taxing rich residents

High Value Resident islanders currently pay £170,000 tax on the first £850,000 they earn, and then 1% on any worldwide income above it

A proposition to remove legislation which lowers the amount of income tax wealthy Jersey residents pay will be debated by the States.

High Value Resident (HVR) islanders currently pay £170,000 tax on the first £850,000 they earn (20%) and then 1% on any worldwide income above it.

Other residents pay a maximum of 20%.

But, proposing that changes, Deputy Lyndsay Feltham said the current policy led to an "unfair tax system" because of differences in people's income.

She also said it treated HVRs "more favourably than other residents".

'Fairness and equity'

In May, Treasury Minister Ian Gorst proposed increasing tax contributions for new HVRs.

Ms Feltham said she had requested a full comprehensive cost benefit review of the HVR scheme by the Council of Ministers, and that no more HVRs move to the island until the changes were made.

She said the current system was discriminatory and HVRs should pay tax "on the same basis as the rest of the population", with no upper limit on what they paid.

She added: "One of the other things am I asking government to do is carry out a full cost benefit and review as to what this regime means for the island.

"It should ask what the impact is on things like housing, on employment, and on our economy, as well as look at if it brings best value to the island, and is it actually bringing the gains that we want as the general public."

The proposition is due to be debated in the States in July.

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