Contents

Schedule 1

Schedule 2

A LAW to provide for the final stage of the transition to independent taxation for people who are married or in a civil partnership.

THE STATES, subject to the sanction of His Most Excellent Majesty in Council, have adopted the following Law –

“ “earned income”, in relation to an individual, means –

(a)     remuneration from an office or employment held by the individual;

(b)     income arising in respect of a pension, superannuation, other allowance, deferred pay or compensation for loss of office given in respect of the past services, in an office or employment, of the individual, the individual’s parent, spouse or civil partner, or a deceased person (regardless of whether the individual, the individual’s spouse, civil partner or parent, or the deceased person contributed to the pension, superannuation or deferred pay);

(c)     income from a property that is attached to or forms part of the emoluments of an office or employment held by the individual;

(d)     income that is –

(i)      charged under Schedule A by virtue of Article 51(1)(b) or (c) (which relate to profits or gains from the trades of disposal or exploitation of land in Jersey), or under Schedule D, and

(ii)      immediately derived by the individual from the carrying on or exercise of the individual’s trade, profession or vocation, either as an individual or as a partner acting personally in a partnership; and

(e)     any other payment required by any provision of this Law to be treated as or deemed to be earned income (including Articles 77AA(2)(b), 131K(1) and 131M(2));”.

“ “marginal income deduction” means a deduction allowed under Article 90AA, 90B or 90C;”.

“16AA Joint returns for spouses and civil partners

(1)     Qualifying partners who are required under Article 16 to deliver a return may deliver a joint return if a valid election (as defined in Article 16AB(1)) is in force.

(2)     While a valid election is in force –

(a)     the responsible partner is required to deliver a return under Article 16 that contains all required information in respect of both qualifying partners;

(b)     the qualifying partner who is not the responsible partner is not required to deliver a return under Article 16 unless the Comptroller requires it under paragraph 5(b);

(c)     the Comptroller must assess both qualifying partners individually under Article 22; and

(d)     a qualifying partner is not entitled to appeal against an assessment made on the other qualifying partner.

(3)     In this Article –

(a)     2 people (“A” and “B”) are “qualifying partners” if –

(i)      A and B entered into a marriage or civil partnership with each other before 1st January 2022,

(ii)      A and B have lived together without any periods of separation since 31st December 2021,

(iii)     A and B were both ordinarily resident in Jersey in the 2021 year of assessment and have not ceased being ordinarily resident in Jersey since then, and

(iv)     A and B have not elected to be independently taxed;

(b)     qualifying partners are separated if –

(i)      they are separated under an order of a court of competent jurisdiction or by agreement of separation, or

(ii)      they are in fact separated and the separation is likely to be permanent;

(c)     a person has elected to be independently taxed if they have made an election under Article 121C, 121D, 121E, 121F, 122DA, 122DB, 122DC or 122DD, as in force immediately before 1st January 2025.

16AB Valid elections: making and revoking

(1)     A valid election is a written notice that –

(a)     notifies the Comptroller that the qualifying partners elect to deliver a joint return;

(b)     gives the Comptroller permission to use both qualifying partners’ income for the purpose of calculating whether either partner is entitled to an increase in their exemption threshold under Article 99;

(c)     nominates one of the qualifying partners as the responsible partner;

(d)     is signed by both qualifying partners; and

(e)     is received by the Comptroller no later than 30th September in the year of assessment to which the return relates.

(2)     The Comptroller must accept a valid election unless, at the time of its receipt, a qualifying partner has an overdue required return or amount of tax.

(3)     The Comptroller must notify both qualifying partners, in writing, of whether the valid application is accepted or refused.

(4)     A valid election –

(a)     remains in force for later years of assessment unless revoked;

(b)     may be revoked by the Comptroller if a qualifying partner fails to deliver a required return or pay an amount of tax that is due;

(c)     may be revoked by either qualifying partner at any time; and

(d)     if the qualifying partners separate, is revoked with effect from the beginning of the year of assessment in which the partners separate.

(5)     If a valid election is revoked –

(a)     the Comptroller must notify the qualifying partners; and

(b)     the Comptroller may require the qualifying partners to file individual returns under Article 16 for a year of assessment –

(i)      that was during the period for which the election was in force, and

(ii)      for which the responsible partner has not provided the required joint return.

(6)     In this Article, “qualifying partners” and “separate” have the same meaning as in Article 16AA(3).”.

“41B  Duty of employer to deduct tax

(1)     An employer who pays earnings to an employee must deduct tax from the earnings at the employee’s effective rate.

(2)     Despite paragraph (1), if the employee is under the upper limit of compulsory school age (as defined in Article 2 of the Education (Jersey) Law 1999), the employer –

(a)     is not required to deduct tax from the employee’s earnings; but

(b)     may choose to deduct tax from the employee’s earnings and, if so, must deduct tax at the employee’s effective rate.

(3)     An employee’s effective rate is –

(a)     the rate specified in a notice issued by the Comptroller under Article 41CC as applying to the employee on the day the deduction is made; or

(b)     if the employer has not received a notice, 20%.

(4)     An agreement is void to the extent that it requires the payment of earnings without deduction of tax in contravention of this Article.

(5)     In this Article, “earnings” includes amounts to which Article 62D applies (which are payments for termination of employment or changes to the duties or emoluments of employment).

41BA Duty of employer to pay deductions to Comptroller

(1)     An employer must, by the time the employer is required to deliver a return under Article 20, pay to the Comptroller the amount required to be deducted by the employer under Article 41B during the period to which the return relates.

(2)     An employer who fails to comply with this Article commits an offence and is liable to a fine.

(3)     If the employer is not resident in Jersey or is a body of persons, both the employer and a person deemed to be an employer under Article A15(6) or (7) are liable to a fine.

41BB Comptroller may estimate amount employer must pay

(1)     The Comptroller may estimate the amount required to be paid by an employer under Article 41BA(1) and serve a notice on the employer requiring the employer to pay the estimated amount if –

(a)     for the period to which the amount relates –

(i)      the date by which the employer is required to deliver a return under Article 20 has passed, and

(ii)      the employer has not delivered the return; or

(b)     the Comptroller is not satisfied that the employer has paid the correct amount under Article 41BA(1).

(2)     If the Comptroller discovers that the estimated amount is incorrect (either because the employer delivers a return under Article 20 or for any other reason), the Comptroller may cancel the notice and serve on the employer a further notice requiring the employer to pay a revised amount.

(3)     A notice must state –

(a)     the estimated or revised amount the employer is required to pay;

(b)     the latest date by which the employer may appeal the amount; and

(c)     the date, which must be at least 15 days after the date of the notice, by which the amount must be paid.

(4)     An employer may appeal against a decision of the Comptroller to serve a notice under this Article by giving notice in writing to the Comptroller no later than 15 days after the service of the notice.

(5)     Part 6 applies, with the necessary modifications, to an appeal under this Article as if it were an appeal against an assessment.

41BC Duty of employer to keep records of deductions

(1)     An employer must keep records of amounts deducted under Article 41B and the effective rate applied for a period of at least 6 years after the deduction is made.

(2)     When an employer deducts tax under Article 41B, the employer must give the employee from whose earnings the tax is deducted written notice of the amount of tax deducted and the effective rate applied.

(3)     An employer must give written notice to an employee containing a summary of the amount of tax the employer deducted from the employee’s earnings in a year of assessment –

(a)     if the employee is still in employment at the end of the year of assessment, by 31st January of the year after the year of assessment; or

(b)     if the employee finishes employment before the end of the year of assessment, on the employee’s last day of employment.

(4)     An employer who fails to comply with this Article commits an offence and is liable to a fine of level 3 on the standard scale.

41BD Failure by employer to deduct tax or pay deductions to Comptroller

(1)     If an employer fails to deduct tax under Article 41B but pays the amount the employer should have deducted to the Comptroller under Article 41BA, the employer may recover the amount from the employee as a civil debt.

(2)     If an employer deducts an amount of tax from an employee’s earnings but fails to pay the amount to the Comptroller under Article 41BA, the employee is entitled to have the deduction treated as a payment of tax by the employee unless –

(a)     the employee is unable to prove, to the satisfaction of the Comptroller, that the deduction was made; or

(b)     the employer is not an individual and, at the time the deduction was made, the employee was directly or indirectly entitled to 20% or more of the income, profits or gains of the employer chargeable to tax under this Law in the year of assessment in which the deduction was made.”.

“(1)    The Comptroller must apply an amount paid under Article 41BA or 41E as a payment of income tax by the employee or sub-contractor from whom it was deducted.”.

“(3)    If the person is married or in a civil partnership, the person must also notify the Comptroller of –

(a)     the person’s spouse’s or civil partner’s –

(i)      name,

(ii)      date of birth,

(iii)     social security number, and

(iv)     reference number assigned by the Comptroller (if any); and

(b)     the date on which the marriage or civil partnership was entered into.”.

“42    Proceedings for recovery of tax

(1)     The Treasurer of the States may institute proceedings for the recovery of income tax at any time after the date specified in the following table –

(2)     If the income tax to be recovered has been charged on an individual for a year of assessment before 2026 in respect of the profits or income of the individual’s spouse or civil partner –

(a)     the Comptroller may serve a notice on the spouse or civil partner demanding payment of the outstanding amount that relates to the spouse’s or civil partner’s income (the “relevant amount”); and

(b)     if the relevant amount has not been paid within 40 days after the service of the notice, the powers of recovery provided in this Law extend to the property, goods and chattels of the spouse or civil partner.”.

“92A Exemption from income tax for individuals whose income is not over the exemption threshold

(1)     An individual is exempt from income tax for a year of assessment if the individual’s relevant income for that year is not more than the individual’s exemption threshold.

(2)     In this Article –

“exemption threshold”, for an individual, is the low income threshold plus any increase in the threshold to which the individual is entitled under a provision in this Part;

“low income threshold” is £20,000;

“relevant income”, for an individual for a year of assessment, means the individual’s total income for the year of assessment less the marginal income deduction (if any) to which the individual is entitled.

92AA Taxation of individuals whose income is over the exemption threshold

(1)     An individual whose relevant income for a year of assessment is more than the exemption threshold is subject to tax charged at the standard rate on the individual’s total income for the year of assessment.

(2)     If Article 92C (marginal rate of tax) applies to an individual for a year of assessment, the amount of tax payable by the individual for the year of assessment is reduced in accordance with that Article.

(3)     In this Article, “exemption threshold” and “relevant income” have the meanings given in Article 92A(2).”.

“92B  Increase in exemption threshold for certain child care payments

(1)     An individual who is entitled to an increase in the exemption threshold under Article 95 for a year of assessment in respect of a child aged under 13 (a “qualifying child”) is entitled to a further increase in the exemption threshold in respect of the qualifying child if, for the year of assessment –

(a)     the individual has qualifying income;

(b)     the individual has made a qualifying child care payment for the child’s care.

(2)     The amount of the increase that the individual is entitled to in respect of each qualifying child is the lesser of –

(a)     the amount that the individual paid in the year of assessment in qualifying child care payments for the child’s care; and

(b)     the maximum increase that applies to the child.

(3)     The total amount of increase that an individual is entitled to for a year of assessment is the lesser of –

(a)     the sum of the amounts to which the individual is entitled under paragraph (2); and

(b)     the individual’s qualifying income for the year of assessment.

(4)     If, for a year of assessment, 2 or more individuals are entitled to an increase in the exemption threshold under this Article in respect of the same child, the increase must be apportioned between them –

(a)     in proportions agreed between the individuals; or

(b)     if there is no agreement, in proportions determined by the Comptroller, to be determined to the best of the Comptroller’s judgement and in accordance with any evidence provided to the Comptroller by the individuals.

(5)     An amount apportioned to an individual under paragraph (4) must not exceed the amount the individual paid in qualifying child care payments for the qualifying child for the year of assessment.

(6)     The Comptroller may require an individual to provide the Comptroller with a certificate from the person to whom the individual makes a qualifying child care payment.

(7)     The certificate –

(a)     must state –

(i)      the name and address of the person,

(ii)      if the person is a registered day carer, the person’s registration number,

(iii)     if the person is a nanny, the person’s reference number from the Jersey Child Care Trust,

(iv)     the full name and date of birth of the qualifying child, and

(v)     the amount received in the year of assessment for care of the qualifying child; and

(b)     for the purposes of Article 137, is a statement made by the individual in connection with a claim for relief.

(8)     In this Article –

“maximum increase”, in relation to a qualifying child, means –

(a)     for a qualifying child whose date of birth is between 1st January and 31st August inclusive and who in the year of assessment has not attained the age of 4 years, £19,700;

(b)     for a qualifying child whose date of birth is between 1st September and 31st December inclusive and who is aged 4 or under on 31st December of the year of assessment, £19,700; or

(c)     for any other child, £7,600;

“qualifying child care payment” means a payment made –

(a)     for the care of a qualifying child to a registered day carer or to a nanny accredited by the Jersey Child Care Trust; or

(b)     if the qualifying child is below compulsory school age, for the attendance of the child in a nursery school or nursery class under Regulations made under Article 9 of the Education (Jersey) Law 1999;

“qualifying income” –

(a)     means income arising from a trade, profession, office, employment or vocation chargeable to tax under Case I, II or IIA of Schedule D or under Schedule A by virtue of Article 51(1)(b) or (c) (which apply to income from commercial dealings in Jersey land or from exploitation of Jersey land); but

(b)     does not include –

(i)      income received or receivable by an individual from the individual’s spouse or civil partner, or

(ii)      the first £5,550 of the individual’s income under sub-paragraph (a);

“registered day carer” means a day carer registered under the Day Care of Children (Jersey) Law 2002 (including day carers treated as registered by virtue of Article 13 of that Law).”.

“99    Increase in exemption threshold for certain spouses and civil partners

(1)     This Article applies to an individual (“partner A”) for a year of assessment if –

(a)     partner A entered into a marriage or civil partnership before 1st January 2022 with another individual (“partner B”);

(b)     partner A and partner B have lived together without any periods of separation since 31st December 2021;

(c)     partner A and partner B were ordinarily resident in Jersey in the 2021 year of assessment and have not ceased to be ordinarily resident in Jersey; and

(d)     partner A’s relevant income for the year of assessment is more than partner B’s relevant income for the year.

(2)     If the result of the following calculation is greater than nil, partner A is entitled to an increase in the exemption threshold of that amount for the year of assessment –

where –

A       is the low income threshold as defined in Article 92A(2);

B       is partner B’s total income for the year of assessment;

C       is the lower of –

(i)      partner A’s earned income for the year of assessment,

(ii)      partner B’s qualifying income for the year of assessment, and

(iii)     £7,950;

D       is the amount in pounds of the increase to which the individual is entitled (if greater than nil).

(3)     Partner A and partner B must provide the Comptroller with any information necessary for the Comptroller to perform the calculation in paragraph (2).

(4)     In paragraph (2) –

“qualifying income”, for an individual, means the individual’s income for the year of assessment that is not earned income;

“relevant income” has the meaning given in Article 92A(2).”.

“(2)    The exemption threshold applicable to the individual, for a relevant year of assessment, is the sum of –

(a)     the apportionment fraction of the low income threshold (as defined in Article 92A(2));

(b)     the apportionment fraction of any increase in the exemption threshold to which the individual is entitled under Part 12, except for Article 99; and

(c)     if paragraph (1)(b) applies and the individual satisfies the requirements of Article 99(1) prior to ceasing to be resident in Jersey, the amount calculated under paragraph (2A) (if that amount is greater than nil).

(2A)  The calculation for the purposes of paragraph (2)(c) is –

               ((32,050 – A ) 𝑥 B ) – (C – (D 𝑥 B )) = E

where –

A       is the low income threshold as defined in Article 92A(2);

B       is the apportionment fraction;

C       is the individual’s spouse’s or civil partner’s total income for the year of assessment;

D       is the lower of –

(i)      the individual’s earned income for the year of assessment,

(ii)      the individual’s spouse’s or civil partner’s qualifying income (as defined in Article 99(4)) for the year of assessment, and

(iii)     £7,950;

E       is the amount in pounds of the increase to which the individual is entitled (if greater than nil).”.

“(b)    “non-Jersey income”, in relation to a non-resident, means income (however derived and regardless of the jurisdiction in which it is derived) which is not Jersey income, including income that is exempt from income tax under this Law;”.

“130C     Relevant earnings

In this Part, “relevant earnings”, in relation to an individual, means the individual’s income assessed to tax that –

(a)     arises in respect of emoluments (but not pension income) from an office or employment held by the individual;

(b)     is charged under Schedule D and is immediately derived by the individual from the carrying on or exercise by the individual of a trade, profession or vocation, either as an individual or as a partner personally acting in a partnership; or

(c)     is charged Schedule A by virtue of Article 51(1)(b) (which applies to income from commercial dealings in Jersey land).”.

“149B     Savings and transitional provisions: taxation of certain married people and civil partners in 2025

Schedule 7 contains savings and transitional provisions that alter the imposition of income tax for the 2025 year of assessment on people who are married or in a civil partnership.”.

“Schedule 7

(Article 149B)

Savings and transitional provisions: taxation of certain married people and civil partners in 2025

1        Interpretation of this Schedule

(1)     In this Schedule –

“partner” means an individual who is a partner A or partner B to whom this Schedule applies;

“partner A” means –

(a)     in a marriage between people of the opposite sex, the husband;

(b)     in a marriage between people of the same sex, the older of the people; and

(c)     in a civil partnership –

(i)      the older of the civil partners, or

(ii)      if the civil partners have made an election under Article 122A (as in force immediately before 1st January 2025), the younger of the civil partners;

“partner B” means –

(a)     in a marriage between people of the opposite sex, the wife;

(b)     in a marriage between people of the same sex, the younger of the people; and

(c)     in a civil partnership –

(i)      the younger of the civil partners, or

(ii)      if the civil partners have made an election under Article 122A (as in force immediately before 1st January 2025), the older of the civil partners.

(2)     People who are married or in a civil partnership are living together for the purposes of this Schedule unless –

(a)     they are separated under an order of a court of competent jurisdiction or by agreement of separation; or

(b)     they are in fact separated and the separation is likely to be permanent.

2        Application of this Schedule

(1)     This Schedule applies to the 2025 year of assessment.

(2)     This Schedule applies to an individual (“A”) if –

(a)     A entered into a marriage or civil partnership before 1st January 2022 with another individual (“B”);

(b)     A and B have lived together without any periods of separation since 31st December 2021;

(c)     neither A nor B became resident in Jersey after 31st December 2021; and

(d)     A and B have not elected to be independently taxed.

(3)     A person has elected to be independently taxed if they have made an election under Article 121C, 121D, 121E, 121F, 122DA, 122DB, 122DC or 122DD, as in force immediately before 1st January 2025.

3        Partners to be taxed jointly

(1)     If the partners are living together during the 2025 year of assessment, partner B’s income is partner A’s income (and not partner B’s income) for the purposes of this Law.

(2)     Any tax falling to be assessed in respect of any income that, due to sub-paragraph (1), is partner A’s income, is assessable on partner A (and not on partner B).

(3)     This paragraph applies –

(a)     to partner A’s trustee, guardian, delegate, heirs, executors and administrators as if those people are partner A; and

(b)     to partner B’s trustee, guardian, delegate, heirs, executors and administrators as if those people are partner B.

4        Deductions from earnings

(1)     Despite paragraph 3, an employer is required to deduct tax from partner B’s earnings in accordance with Article 41B.

(2)     The rates determined under Articles 41C, 41CA and 41CB must be determined as if partner A is the employee (regardless of whether partner A is in employment).

(3)     The rate specified in a notice issued to a partner by the Comptroller under Article 41CC applies to both partners, unless the partners make an election under paragraph 5.

5        Joint election to adjust rates of deductions from earnings

(1)     Partners who are both in employment may jointly elect for the rate applicable to the earnings of one partner to be increased and the rate applicable to the earnings of the other partner to be correspondingly reduced.

(2)     If the Comptroller agrees to the adjusted rates proposed in an election, the Comptroller must issue a notice in writing of the rates applicable to each partner and the day from which the rates apply.

(3)     Article 41CD applies to a refusal by the Comptroller to issue a notice under sub-paragraph (2) as it applies to a refusal to determine a rate to apply to an employee.

(4)     The aggregate of the deductions made when applying the adjusted rates to the earnings of both partners must not be less than the aggregate of the deductions that would have been made if the adjustment had not been made.

(5)     An election stops having effect if –

(a)     either partner stops being in employment;

(b)     sub-paragraph (4) is not complied with;

(c)     a new rate applies to the partners because of a further notice being issued under Article 41CC; or

(d)     an effective rate under Article 41B(3)(b) applies.

6        Threshold for exemption from income tax

(1)     This paragraph applies if partner A proves that for the 2025 year of assessment –

(a)     partner A and B live together; or

(b)     partner A and B do not live together but –

(i)      partner B is wholly maintained by partner A during the year, and

(ii)      in computing the amount of partner A’s income for the purposes of this Law, partner A is not entitled to make any deductions in respect of sums paid for the maintenance of partner B.

(2)     If this paragraph applies, partner A’s exemption threshold for the purposes of Part 12 and Articles 129AA and 129A is £32,050 plus –

(a)     if both partner A and partner B receive earned income for the year of assessment, the lowest of –

(i)      £7,950,

(ii)      an amount equal to partner A’s earned income for the year of assessment, or

(iii)     an amount equal to partner B’s earned income for the year of assessment; and

(b)     any increase to the threshold to which partner A is entitled under Part 12, except for Article 99.

(3)     If this paragraph applies, partner A’s exemption threshold for the purposes of Articles 129AA and 129A is the apportionment fraction of the amount calculated at sub-paragraph (2).

(4)     For the purposes of this paragraph, “earned income” of an individual does not include –

(a)     earned income received or receivable by an individual from the individual’s partner; or

(b)     the payment to an individual who is partner B of a benefit to which Article 77AA applies (Social Security allowances) unless the benefit is –

(i)      a Jersey old age pension payable to partner B by virtue of partner B’s own insurance, or

(ii)      home carer’s allowance payable to partner B.

7        Requirement to provide partner’s information when entering or resuming employment

(1)     If Article 41H applies to a person to whom this Schedule applies, the person must, at the same time as providing the information required under that Article, notify the Comptroller in writing of –

(a)     which partner is partner A and which partner is partner B; and

(b)     the information listed in Article 41H(2) in respect of their partner.

(2)     The Comptroller may –

(a)     require the information to be provided in a form and manner approved by the Comptroller; and

(b)     require the person to sign a declaration that the information is true, complete and correct to the best of the person’s knowledge.

8        Relevant earnings for purposes of Part 19

Despite paragraph 3, partner B’s relevant earnings for the purposes of Part 19 (special provisions as to pensions and pension schemes, annuities, etc) are not partner A’s relevant earnings.

9        Access of partner B to tax information

The Comptroller must, on request of a partner B who is living together with their partner A, provide information collected under this Law that relates to partner A for a period –

(a)     that is not before the 2021 year of assessment; and

(b)     during which the partners were living together and were married or in a civil partnership.

10      Relief for non-residents

For the purposes of Article 129B, “non-Jersey income” of partner A includes income of partner B that is not Jersey income (as defined in Article 129B(1)(a)).

11      Treatment of amounts received by Comptroller

Despite Article 41G(1), if the Comptroller receives an amount paid under Article 41A or 41B that has been deducted from a partner B, the Comptroller must apply the amount as a payment of income tax by partner A.

12      Proceedings for recovery of tax from partners

The powers of recovery provided in this Law for the non-payment of income tax by partner A extend to the property, goods and chattels of partner B if –

(a)     the unpaid income tax is charged on partner A in respect of income that, if not for paragraph 3(1), would be partner B’s income;

(b)     the Comptroller serves partner B with a notice demanding payment of the unpaid income tax; and

(c)     partner B fails to pay the unpaid income tax within 7 days after the notice is served.”.

“(d)    “relevant threshold exemption”, for an individual, means the low income threshold as defined in Article 92A(2).”.

“6.     The name and address of the annuitant and, if the annuitant has a spouse or civil partner, the name and address of the spouse or civil partner.”.

“(b)    the low income threshold, as defined in Article 92A(2) of the Income Tax Law.”.

“(b)    the low income threshold, as defined in Article 92A(2) of the Income Tax Law, multiplied by 1.7.”.