Jersey Cuts Income Tax, Boosts Allowances
SAINT HELIER – Tax burdens on personal incomes in Jersey are set to be reduced, and the average taxpayer will soon see their tax obligations fall by over GBP 800 per year.
The government of Jersey is looking to “…cut taxes, invests in essential infrastructure for the long-term benefit of the Island and gives something back to the hardworking people of Jersey,” according to a statement made on October 8th by the Minister for Treasury and Resources Philip Ozouf during the presentation of the national budget plan for 2014.
As many as 40 000 households in Jersey will benefit from 1 percent reduction of the top marginal tax rate, currently set at 27 percent, with the move being estimated to reduce total burdens by more than GBP 7.8 million.
Approximately 84 percent of taxpayers will also benefit from an increase to the tax-free threshold on personal incomes, cutting total tax obligations by a further GBP 2.5 million.
Individuals paying the top marginal tax rate and at the same are providing financial support to their children enrolled in a tertiary institution will also enjoy an additional GBP 3000 increase to the currently available GBP 6000 special purposes tax allowance.
In an effort to further boost social development and to foster the expansion of the country’s infrastructures, the government will provide greater funding to public projects, with a special emphasis on facilitating improvements to the health system, upgrades of liquid waste disposal systems, and a significant expansion of the national housing program.
Photo by MarilynJane