Jersey Law 10/1990

 

FINANCE (JERSEY) LAW 1990

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A LAW     to continue certain expiring fiscal Laws; to prescribe the standard rate of income tax for the year nineteen hundred and ninety; to amend further the law relating to income tax to increase personal allowances and reliefs, to modify provisions in relation to the allowance for a housekeeper for widows and widowers and the additional personal allowance for children, to provide relief in respect of premiums paid under certain contracts of private medical insurance, and to make further provisions in respect of the exemption of annuity funds and the transfer of payments between funds; to increase the registration fee under the Depositors and Investors (Prevention of Fraud) (Jersey) Laws, 1967 to 1986; and to increase wines and spirits duty, beer duty, the duty on certain tobacco products and oils and spirits duty; sanctioned by Order of Her Majesty in Council of the

 

1st day of May 1990

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(Registered on the 15th day of June 1990)

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STATES OF JERSEY

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The 13th day of December 1989

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

PART I

Continuation of certain expiring fiscal laws

ARTICLE 1

The Laws mentioned in the First Schedule to this Law, as amended and as continued in force by any subsequent enactment, shall remain in force until the thirty-first day of December 1990.

PART II

Standard rate of income tax for 1990

ARTICLE 2

There shall be levied and charged in the Island for the year nineteen hundred and ninety in accordance with the provisions of the Income Tax (Jersey) Law 1961,1 as amended by any subsequent enactment,2 including this Law, income tax at the standard rate of twenty pence in the pound.

PART III

Amendment of Income Tax Law in respect of personal allowances and reliefs

ARTICLE 3

(1)           In Article 92A of the Income Tax (Jersey) Law 1961,3 as amended,4 (hereafter in this Part referred to as “the principal Law”) –

(a)     in paragraph (1) for the words “six thousand seven hundred and fifty pounds” and “ten thousand nine hundred pounds” there shall be substituted the words “seven thousand five hundred pounds” and “twelve thousand four hundred pounds” respectively;

(b)     in the first proviso to paragraph (1) for the words “six thousand seven hundred and fifty pounds” and “ten thousand nine hundred pounds” there shall be substituted the words “seven thousand five hundred pounds” and “twelve thousand four hundred pounds” respectively, and for the words “one thousand five hundred pounds”, in both places, there shall be substituted the words “one thousand six hundred and fifty pounds”;

(c)     in the second proviso to paragraph (1) for the words “six thousand seven hundred and fifty pounds” and “ten thousand nine hundred pounds” there shall be substituted the words “seven thousand five hundred pounds” and “twelve thousand four hundred pounds” respectively;

(d)     in the third proviso to paragraph (1) for the words “six thousand seven hundred and fifty pounds” and “ten thousand nine hundred pounds” there shall be substituted the words “seven thousand five hundred pounds” and “twelve thousand four hundred pounds” respectively;

(e)     in the fourth proviso to paragraph (1) for the words “six thousand seven hundred and fifty pounds” and “ten thousand nine hundred pounds” there shall be substituted the words “seven thousand five hundred pounds” and “twelve thousand four hundred pounds” respectively;

(2)           In paragraph (1) of Article 94 of the principal Law5 for the words “two thousand eight hundred pounds” and “one thousand four hundred pounds” there shall be substituted the words “four thousand two hundred pounds” and “two thousand one hundred pounds” respectively.

(3)           In paragraphs (1) and (3) of Article 95 of the principal Law6 for the words “one thousand five hundred pounds” there shall be substituted the words “one thousand six hundred and fifty pounds”.

ARTICLE 4

(1)           For Article 96 of the principal Law7 there shall be substituted the following Article –

“ARTICLE 96

Widower’s or widow’s housekeeper

(1)          If an individual proves that he is a widower and that for the year of assessment a relative of his or his deceased wife or a person employed by him for that purpose is acting in the capacity of a housekeeper he shall be entitled to a deduction of one thousand five hundred pounds in respect of that relative or person.

(2)          No relief shall be allowed under this Article –

(a)     unless the individual proves that no other individual is entitled to a deduction in respect of that relative under the provisions of this Part of this Law or, if any other individual is so entitled, that the other individual has relinquished his claim thereto; or

(b)     where the relative is a married woman living with her husband and the husband has claimed and been allowed the higher deduction under paragraph (1) of Article 94 of this Law, or the relative is a man who has claimed and been allowed that higher deduction; or

(c)     to an individual entitled to relief under the provisions of Article 98A of this Law.

(3)          Not more than one deduction shall be allowed to an individual under this Article for any year.

(4)          In this Article ‘housekeeper’ means a person who is responsible by delegation for the management of the household, including arrangements for food, housekeeping expenditure and the care of linen and laundry.

(5)          This Article shall apply to an individual being a widow as it applies to an individual being a widower, with the substitution of ‘her deceased husband’ for ‘his deceased wife’.”

(2)           Articles 97 and 98 of the principal Law8 are repealed.

(3)           For Article 98A of the principal Law9 there shall be substituted the following Article –

“ARTICLE 98A

Additional allowance in respect of children

(1)          If an individual proves in the case of a year of assessment that –

(a)     he is not entitled to the higher deduction under paragraph (1) of Article 94 of this Law or that he is so entitled but his wife was throughout the year of assessment totally incapacitated by physical or mental infirmity; and

(b)     he is entitled to a deduction under Article 95 of this Law in respect of a child resident with him;

he shall, subject to paragraphs (2) to (5) of this Article, be entitled to a deduction of three thousand two hundred and fifty pounds.

(2)          Not more than one deduction shall be allowed to an individual under this Article for any year.

(3)          Where –

(a)     a man and a woman who are not married to each other live together as husband and wife for the whole or any part of a year of assessment; and

(b)     apart from this paragraph each of them would be entitled to a deduction under paragraph (1) of this Article; neither of them shall be entitled to such a deduction except in respect of the youngest of the children in respect of whom either would otherwise be entitled to a deduction.

(4)          Where more than one individual is entitled to relief under this Article in respect of the same child, the deduction under paragraph (1) of this Article shall be apportioned between them in such proportions as they may agree or, in default of such agreement, in proportion to the length of the periods for which the child was resident with them respectively in the year of assessment.

(5)          Where for any year of assessment an individual is entitled under this Article to apportioned amounts in respect of two or more children, the deduction to which he is entitled shall be equal to the sum of those amounts, or the amount referred to in paragraph (1) of this Article, whichever is the less.”

ARTICLE 5

This Part of this Law shall have effect for the year nineteen hundred and eighty-nine and ensuing years.

PART IV

Amendments of Income Tax Law in respect of medical insurance premiums

ARTICLE 6

(1)           After Article 101 of the Income Tax (Jersey) Law 1961,10 as amended, (hereafter in this Part referred to as “the principal Law”) there shall be inserted the following Article –

“ARTICLE 101A

Medical insurance premiums

(1)          Subject to the provisions of this Article, an individual who has made a contract of private medical insurance shall be entitled to deduct from the amount of his assessable income the amount of the premiums paid by him in accordance with the contract.

(2)          No such deduction shall be allowed unless the contract of private medical insurance –

(a)     is made with an insurer carrying on in the United Kingdom business of any of the classes specified in Part I of Schedule 2 to the Insurance Companies Act 1982 (c.50) of the United Kingdom; and

(b)     provides indemnity solely against the costs or part of the costs of medical and surgical treatments and diagnosis, nursing care or other ancillary services; and

(c)     insures the individual referred to in paragraph (1) of this Article and, as appropriate, his wife and any child of his in respect of whom he is entitled to a deduction under the provisions of Article 95 of this Law.

(3)          Where a premium is paid by a wife out of her separate income in respect of a contract of private medical insurance the same deduction shall be allowed as if the premium were a premium paid by her husband.”

(2)           After paragraph (2) of Article 10611 of the principal Law there shall be inserted the following paragraph –

“(3)        In calculating the income tax that would be payable under paragraph (2) of this Article no account shall be taken of the deduction which an individual would otherwise be entitled to make in accordance with the provisions of Article 101A of this Law.”

ARTICLE 7

This Part of this Law shall have effect for the year nineteen hundred and ninety and ensuing years.

PART V

Amendments of Income Tax Law in respect of the exemption of annuity funds and the transfer of payments between funds

ARTICLE 8

(1)           After sub-paragraph (f) of Article 115 of the Income Tax (Jersey) Law 1961,12 as amended, (hereafter in this Part referred to as “the principal Law”) there shall be inserted the following sub-paragraph –

“(fa)  income derived from investments or deposits of the annuity fund of a company resident in the Island and carrying on in the Island the business of granting annuities on human life.”

(2)           After clause (iii) of the proviso to paragraph (3) of Article 131 of the principal Law13 there shall be inserted the word “or” and the following clause –

“(iv)  notwithstanding that the rules of the fund or scheme provide for the transfer of a sum representing the accrued rights of an employee to another fund or scheme approved under this Article, or to the annuity fund of an annuity contract as defined in Article 131B of this Law.”

(3)           After sub-paragraph (g) of paragraph (4) of Article 131B of the principal Law,14 as amended, there shall be inserted the following sub-paragraph –

“(h)   for the individual having accrued rights under a contract to require or request a sum representing those accrued rights under the contract to be paid to –

(i)      the annuity fund of another annuity contract, or

(ii)     a fund or scheme approved by the Comptroller in accordance with the provisions of paragraph (3) of Article 131 of this Law.”

ARTICLE 9

This Part of this Law shall have effect for the year nineteen hundred and eighty-nine and ensuing years.

PART VI

Amendment of Income Tax Law in respect of annuity contracts for overseas residents

ARTICLE 10

After Article 131B of the Income Tax (Jersey) Law 1961,15 as amended, there shall be inserted the following Article –

“ARTICLE 131C

Annuity contracts for overseas residents

(1)          The Comptroller may approve a retirement annuity contract made by an individual, who is resident outside the Island and whose employment, trade or profession, if any, is exercised outside the Island, with a company carrying on business through a branch in the Island, and carrying on in the Island the business of granting annuities on human life.

(2)          The Comptroller may, if he thinks fit, and subject to any conditions he thinks proper to impose, approve a contract notwithstanding that the contract provides for the right to receive, by way of commutation, a lump sum representing the accrued rights under the contract.

(3)          For the purposes of paragraph (1) of this Article, duties performed in the Island, the performance of which is merely incidental to the performance of other duties outside the Island, shall be treated as performed outside the Island.

(4)          Where an annuity is paid under a retirement annuity contract approved under this Article to a person not resident in the Island, income tax shall not be deducted from any payment of the annuity or accounted for under Article 87 of this Law by the persons having control of the annuity fund of the retirement annuity contract.”

ARTICLE 11

This Part of this Law shall have effect for the year nineteen hundred and ninety and ensuing years.

PART VII

Increase of fees under Depositors and Investors (Prevention of Fraud) (Jersey) Law

ARTICLE 12

In paragraph (1) of Article 4 of the Depositors and Investors (Prevention of Fraud) (Jersey) Laws 1967 to 198616 for the words “five thousand pounds” there shall be substituted the words “seven thousand five hundred pounds”.

ARTICLE 13

This Part of this Law shall have effect with respect to applications for registration made after the thirty-first day of January 1990.

PART VIII

Amendment of Wines and Spirits Duty Law

ARTICLE 14

For the First and Second Schedules to the Wines and Spirits (Revenue Duties) (Jersey) Law 1973,17 as amended, there shall be substituted the Schedules so numbered set out in the Second Schedule to this Law.

ARTICLE 15

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the twenty-eighth day of November 1989.

PART IX

Amendment of Beer Duty Law

ARTICLE 16

In the first paragraph of Article 1 of the “Loi (1937) sur la perception d’un impôt sur la bière”,18 as amended,19 for the expression “£13.92” there shall be substituted the expression “£15.10”.

ARTICLE 17

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the twenty-eighth day of November 1989.

PART X

Amendment of Tobacco Duty Law

ARTICLE 18

In the first paragraph of Article 1 of the “Loi (1937) sur la perception d’un impôt sur le tabac”, as amended20

(a)     in sub-paragraph (b) for the words “et cigarettes” there shall be substituted the words “,des cigarettes et du tabac à rouler”;

(b)     for sub-paragraph (c), there shall be substituted the following sub-paragraph –

“(c)   sur –

 

(i)

le tabac en –

 

 

cigares

£12.28

 

cigarettes

£15.35

(ii)

le tabac à rouler

£13.05.”

ARTICLE 19

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the twenty-eighth day of November 1989.

PART XI

Amendment of Oils and Spirits Duty Law

ARTICLE 20

In Article 2 of the “Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”, as amended,21 for the expressions “£0.22” and “£3.52” there shall be substituted the expressions “£0.66” and “£4.18” respectively.

ARTICLE 21

Notwithstanding anything to the contrary in any other enactment, the increase of duty specified in this Part of this Law shall apply not only to any oils and spirits imported into the Island as from the time of the coming into force of this Part but also to any oils and spirits which were imported prior to that time and which are still deposited in the importer’s compound at that time.

ARTICLE 22

This Part of this Law shall be deemed to have come into force at 11.59 p.m. on the twenty-eighth day of November 1989.

PART XII

Short Title

ARTICLE 23

This Law may be cited as the Finance (Jersey) Law 1990.

 

R.S. GRAY

 

Deputy Greffier of the States.


FIRST SCHEDULE

(Article 1)

Fiscal Laws continued in force

Import Duties (Jersey) Law, 1932.22

“Loi (1937) sur la perception d’un impôt sur le tabac”.23

“Loi (1937) sur la perception d’un impôt sur la bière”.24

“Loi (1940) autorisant la perception d’un impôt sur certaines huiles et essences”25

Revenue Duty on Oils and Spirits (Administration) (Jersey) Law 1940.26


SECOND SCHEDULE

(Article 14)

Amendment of Wines and Spirits Duty Law

FIRST SCHEDULE

(Article 3)

Impôt on spirits

£9.19 per litre of alcohol in the spirits”

SECOND SCHEDULE

(Article 4)

Impôt on wines

 

Strength of wines

Rate
per hectolitre

Cider or perry not exceeding 8.6 per cent volume

£15.75

Wine exceeding 1.2 per cent volume but not exceeding 5.5 per cent volume

£15.26

Wines exceeding 5.5 per cent volume but not exceeding 15 per cent volume

£61.05

Wines exceeding 15 per cent volume but not exceeding 22 per cent volume

£74.83

 

Per litre of alcohol
in the wine

Wines exceeding 22 per cent volume

£9.19

 

For the purposes of this Schedule –

(a)     the expression ‘per cent volume’ means the percentage of alcohol in the wine determined in accordance with the provisions of Article 2 of this Law; and

(b)     the expression ‘per litre of alcohol in the wine’ means the quantity of alcohol in the wine as determined in accordance with the provisions of Article 2 of this Law.”



1        Volume 1961–1962, page 197.

2        Volume 1961, page 445, Volume 1963–1965, pages 97, 115, 143, 144, 178, 190, 423, 424 and 445; Volume 1966–1967, pages 422, 523, 524 and 526, Volume 1968–1969, pages 38 and 220; Volume 1970–1972, pages 209, 210 and 382; Volume 1973–1974, pages 275 and 276; Volume 1975–1978, pages 47, 48, 148, 149, 257 and 258; Volume 1979–1981, pages 17, 157, 158, 159, 163, 297, 298, 383 and 384; Volume 1982–1983, page 47; Volume 1984–1985, page 76; Volume 1986–1987, pages 192, 193, 198, 201, 211, 219 and 299, and Volume 1988–1989, pages 222, 223, 224, 225, 381, 382, 383, 384 and 388.

3        Volume 1970–1972, page 204.

4        Volume 1973–1974, page 34; Volume 1982–1983, page 47, and Volume 1988–1989, pages 223, 224 and 381.

5        Volume 1961–1962, page 254; Volume 1975–1978, page 149, and Volume 1988–1989, page 382.

6        Volume 1961–1962, page 255; Volume 1963–1965, page 454, and Volume 1988–1989, page 382.

7        Volume 1966–1967, page 420, and Volume 1988–1989, page 382.

8        Volume 1961–1962, pages 257, 258 and 259, and Volume 1988–1989, page 382.

9        Volume 1966–1967, page 422; Volume 1986–1987, page 211, and Volume 1988–1989, page 383.

10      Volume 1961–1962, page 262.

11      Volume 1961–1962, page 264.

12      Volume 1963–1965, page 144.

13      Volume 1975–1978, page 50.

14      Volume 1986–1987, page 304.

15      Volume 1986–1987, page 305.

16      Volume 1966–1967, page 616; Volume 1975–1978, page 405; Volume 1982–1983, page 10, and Volume 1986–1987, page 83.

17      Volume 1973–1974, page 44, and Volume 1988–1989, page 389.

18      Tome VII, page 216.

19      Volume 1979-1981, page 394, and Volume 1988-1989, page 389.

20      Tome VII, page 213; Volume 1979-1981, page 394, and Volume 1988-1989, page 390.

21      Tome VII, page 321; Volume 1979-1981, page 395, and Volume 1988-1989, page 509.

22      Tome VII, page 42.

23      Tome VII, page 213; Volume 1986-1987, page 307, and Volume 1988-1989, page 390.

24      Tome VII, page 216; Volume 1979-1981, page 394, and Volume 1988-1989, page 389.

25      Tome VII, page 320, Volume 1979-1981; pages 185 and 395, and Volume 1988-1989, page 509.

26      Tome VII, page 323.


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