Call for £80 tax reduction for everyone

Saturday 16th August 2008, 9:55AM BST.

ISLANDERS should get an £80 tax reduction from a proposed new rent charge on foreign-owned companies, according to Senator Jim Perchard.

The Senator says that the £5.6m that Treasury say they could receive from the charge on those companies who will pay no tax under zero-ten rules, should go back to taxpayers to lessen the strain on them.

Senator Perchard, who chaired a Scrutiny panel on the zero-ten system, says it could mean a rise in tax allowances of £400, which translates to £80 off the annual tax bill for around 70,000 Islanders.

Under zero-ten, non-Jersey-owned non-finance companies will not pay any income tax on their profits to the Jersey taxman. But under the Treasury department’s proposals, those firms will pay 20% of their assessed annual rent, and a tax credit will ensure that Jersey shareholders, who will pay tax on profits as if they were personal income, will not be double-taxed.

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