Social Security (Amendment of Law No. 10) (Jersey) Regulations 2015

Made                                                                   16th December 2015

Coming into force                                                17th December 2015

THE STATES, in pursuance of Articles 50 and 51 of the Social Security (Jersey) Law 1974[1], have made the following Regulations –

1        Social Security (Jersey) Law 1974 amended

(1)     In this Regulation, a reference to an Article or Schedule by number only is a reference to the Article or Schedule of that number in the Social Security (Jersey) Law 1974[2].

(2)     After Article 54C there shall be inserted the following Article –

54D Transitional provision for LTC contributions in 2015

(1)     Any notice issued by the Comptroller in 2015 in respect of a person’s LTC contribution for that year shall be taken to be a notice of the estimate of that amount served and calculated under paragraphs 2 and 2A of Schedule 1D as amended by the Social Security (Amendment of Law No. 10) (Jersey) Regulations 2015[3].

(2)     In paragraph (1) ‘Comptroller’ has the same meaning as in Schedule 1D.”.

(3)     In Schedule 1D –

(a)     in paragraph 2(1) –

(i)      for the word “shall,” there shall be substituted the word “may,”,

(ii)      at the end of the sub-paragraph there shall be added the words “or an estimate of that amount”;

(b)     in paragraph 2(2) after the words “an LTC contribution” there shall be inserted the words “or an estimate of an LTC contribution”;

(c)     in paragraph 2(3) after the word “pay,” there shall be inserted the words “or an estimate of the person’s LTC contribution,”;

(d)     after paragraph 2 there shall be inserted the following paragraph –

2A   Estimate of LTC contribution

(1)     An estimate of the amount of a person’s LTC contribution for a year (the ‘payment year’) shall be calculated in accordance with this paragraph.

(2)     Schedule 1C shall apply as if references in it to –

(a)     the upper annual income limit; and

(b)     subject to sub-paragraph (5), the person’s gross income and taxable income, and the person’s entitlement to a reduction under Article 92C of the 1961 Law,

were references to those amounts or that entitlement –

(i)      for the purposes described in sub-paragraph (3) – for the year preceding the payment year;

(ii)      for the purposes described in sub-paragraph (4) – for the year that is 2 years before the payment year;

(iii)     for the purposes described in sub-paragraph (5) – for the payment year.

(3)     The purposes referred to in sub-paragraph (2)(i) are –

(a)     serving a notice under paragraph 2 of an estimate of the amount of the LTC contribution of a person who is not a new taxpayer;

(b)     calculating the LTC contribution effective rate of a person who is not a new taxpayer and whose ITIS effective rate is calculated under Article 41C(2) of the 1961 Law;

(c)     calculating the LTC contribution effective rate of a new taxpayer whose ITIS effective rate is calculated under Article 41C(5) of the 1961 Law.

(4)     The purposes referred to in sub-paragraph (2)(ii) are –

(a)     calculating an estimate of the amount of a person’s LTC contribution for the purposes of Article 41A of the 1961 Law as modified by Article 49B of that Law;

(b)     calculating the LTC contribution effective rate of a person who is not a new taxpayer and whose ITIS effective rate is calculated under Article 41C(5) of the 1961 Law.

(5)     The purposes referred to in sub-paragraph (2)(iii) are –

(a)     serving a notice under paragraph 2 of an estimate of the amount of the LTC contribution of a new taxpayer;

(b)     calculating the LTC contribution rate of a new taxpayer whose ITIS effective rate is calculated under Article 41C(2) of the 1961 Law as modified by Article 41H of that Law.

(6)     Where the calculation is to be made for the purpose of calculating a person’s LTC contribution effective rate, in the case of a person whose ITIS effective rate is calculated by reference to his or her estimated liability to income tax for a year, the amounts referred to in sub-paragraph (2)(b) shall also be estimates.”;

(e)     in paragraph 4 –

(i)      in sub-paragraph (2), for clause (a) of the defined sum “L”, there shall be substituted the following clause –

“(a)    the employee’s estimated LTC contribution for the payment year, calculated in accordance with paragraph 2A;”,

(ii)      in sub-paragraph (2) at the end of the defined sum “I” there shall be added the words “or, as the employee’s case requires, Article 41C(2) as modified by paragraph (5) of that Article or Article 41H(10)”,

(iii)     sub-paragraphs (3) and (4) are deleted.

2        Income Tax (Jersey) Law 1961 amended

(1)     In this Regulation, a reference to an Article or Schedule by number only is a reference to the Article or Schedule of that number in the Income Tax (Jersey) Law 1961[4].

(2)     In Article 49B(2)(b) for clause (ii) of the substituted paragraph (2)(b) there shall be substituted the following clause –

“(ii)    the LTC portion of the instalment, being 50% of the person’s estimated LTC contribution for the year in which the instalment is due calculated in accordance with paragraph 2A(2)(ii) and (4)(a) of Schedule 1D to the 1974 Law (disregarding any amount paid by way of deduction under Article 41B or 41E).”.

(3)     In Article 49B(4)(c), in the substituted paragraph (4)(a)(ii), for the words “a provisional” there shall be substituted the word “the”.

(4)     Schedule 1A is revised in accordance with the amendments made by this Regulation.

3        Citation and commencement

These Regulations may be cited as the Social Security (Amendment of Law No. 10) (Jersey) Regulations 2015 and shall come into force on the day after the day they are made.

m.n. de la haye, o.b.e.

Greffier of the States

 


 



[1]                                    chapter 26.900

[2]                                    chapter 26.900

[3]                                    R&O.157/2015

[4]                                    chapter 24.750


Page Last Updated: 14 Apr 2016