03 August 2021
The Minister for Treasury and Resources, Deputy Susie Pinel, has lodged an Amendment Law, which will begin the process of reform which means all taxpayers will be treated equally by the tax system.
Currently, married couples and civil partners are assessed together for tax. This means that they normally fill out one tax return per couple. For married couples, the man (or older person in a same-sex marriage or civil partnership) is legally responsible for the couple's tax. This includes filling out the form, getting the couple's tax bill, and taking responsibility for paying the bill.
Under Independent Taxation, both partners in a marriage or same sex civil partnership will be treated equally. This means that each person would complete their own tax return, receive their own tax bill and be responsible for paying it.
In the proposed amendment to the Law – due to be debated by the States Assembly in September – arrivals to the Island from January 2022 will automatically be registered for Independent Taxation. There will be no change for those who are taxed as a single person.
There would be a pilot for those couples who are already separately assessed for tax purposes to choose to be moved to Independent Taxation from the start of next year.
The amendment to the Law also provides for the voluntary move of married couples and civil partners to Independent Taxation from 2023.
Minister for Treasury and Resources, Deputy Susie Pinel, said: "This Amendment Law is the first step to reforming our antiquated and archaic rules around tax, and ensuring that every Islander who pays into our tax system is treated equitably.
"I'm committed to supporting Islanders through this change and ensuring that no-one is detrimentally affected by the move to Independent Taxation. More detailed information will be made available in the coming months.
"At this early stage, Revenue Jersey is not able to answer questions about the personal impacts of Independent Taxation."
The proposition is available via the States Assembly website.