Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 2009

Made                                                                   10th December 2009

Coming into force                                                     1st January 2010

THE STATES, in pursuance of Article 6 of the Taxation (Land Transactions) (Jersey) Law 2009[1] and Article 3 of the Stamp Duties and Fees (Jersey) Law 1998[2], have made the following Regulations –

1        Interpretation

In these Regulations “Law” means the Taxation (Land Transactions) (Jersey) Law 2009[3].

2        Paragraph 1 of the Schedule substituted

For paragraph 1 of the Schedule to the Law there shall be substituted the following paragraph –

“1      Interpretation of Schedule

In this Schedule –

‘amount secured’ means the amount advanced by a secured party, such amount being secured by a transaction to which Article 3(1)(c) applies;

‘gross value’, in relation to land, means its market value.”.

3        Paragraph 3A of the Schedule inserted

After paragraph 3 of the Schedule there shall be inserted the following paragraph –

“3A   Further amounts secured by a transaction to which Article 3(1)(c) applies

(1)     This paragraph applies where there is a transaction to which Article 3(1)(c) applies and the conditions specified in sub-paragraph (2) are met.

(2)     Those conditions are that –

(a)     some or all of the amount secured by that transaction remains unpaid at the time a new amount is secured (the first amount being referred to as the ‘original amount’ and the second amount as the ‘new amount’);

(b)     the original and new amount apply to a dwelling that is owned by a company and occupied by a person (the ‘occupier’) as his or her sole place of residence in Jersey, such person being entitled to occupy that dwelling by virtue of owning shares in that company;

(c)     the new amount and the original amount relate to the same dwelling;

(d)     the occupier referred to in clause (b) is –

(i)      the borrower of the original amount and the new amount; and

(ii)      a person to whom any of Regulations 1(1)(a) to (j) and (n)(ii) and (iii) of the Housing (General Provisions) (Jersey) Regulations 1970[4] apply;

(e)     the effect of borrowing the new amount is to extinguish the borrower’s debt in respect of the original amount;

(f)      LTT in respect of the original amount has been paid under paragraph 3.

(3)     LTT shall be charged on the value of the transaction described in sub-paragraph (1) in respect of the new amount at the rate of –

(a)     where the new amount is less than or equal to the unpaid amount, £50;

(b)     where the new amount is greater than the unpaid amount –

(i)      for the portion of the amount that is equal to the unpaid amount, £50, and

(ii)      for the portion of the amount that is greater than the unpaid amount, 50p for each £100 or part of £100, subject to a minimum of £5.”.

4        Paragraph 4 of the Schedule amended

For paragraph 4(3) of the Schedule to the Law there shall be substituted the following sub-paragraph –

“(3)    The rate of LTT applicable to a transaction to which this paragraph applies is £50, plus –

(a)     where the value of the transaction does not exceed £300,000, nil;

(b)     where the value of the transaction exceeds £300,000 but does not exceed £400,000, nil in respect of the first £300,000, plus £1 for each £100 or part of £100 in excess thereof.”.

5        Paragraph 5 of the Schedule substituted

For paragraph 5 there shall be substituted the following paragraph –

“5      First time buyers: security interests

(1)     This paragraph applies to a transaction described in Article 3(1)(c) which relates to a transaction described in Article 3(1)(a) which is charged with LTT under paragraph 4, where both transactions relate to the same shares and take place on the same day.

(2)     The rate of LTT applicable to a transaction to which this paragraph applies is £50 plus –

(a)     where the amount secured by the security agreement does not exceed £300,000, nil;

(b)     where the amount secured by the security agreement exceeds £300,000 but does not exceed £400,000, nil in respect of the first £300,000 plus 25p for each £100 or part of £100 in excess thereof, subject to a minimum of £25.”.

6        Schedule to Stamp Duties and Fees (Jersey) Law 1998 amended

In item 1(d) in Part 1 the Schedule to the Stamp Duties and Fees (Jersey) Law 1998[5] after the words “in all cases under this item,” there shall be inserted the words “except paragraph (ba)”.

7        Citation and commencement

(1)     These Regulations may be cited as the Taxation (Land Transactions) (Amendment of Law) (Jersey) Regulations 2009.

(2)     These Regulations shall come into force on the same date as the Taxation (Land Transactions) (Jersey) Law 2009[6].

m.n. de la haye

Greffier of the States

 


 



[1]                                    L.10/2009

[2]                                    chapter 24.960

[3]                                    L.10/2009

[4]                                    chapter 18.315.50

[5]                                    chapter 24.960

[6]                                    L.10/2009


Page Last Updated: 25 Apr 2016