UK budget ‘a mixed bag’ for Jersey

Friday 25th March 2011, 3:00PM GMT.

Bdo tax director Robert Brown

THE UK Budget is effectively a mixed bag for Jersey, according to tax professionals who say that there is both good and bad in Chancellor George Osborne’s package of measures.

On the positive front, Islanders who travel to the UK regularly on business are likely to benefit from an announcement that UK residence for tax purposes is to be formally defined in future.

Tax professionals have welcomed the declaration that a residence test will be brought into force by April next year.

Rob Brown, of Bdo, said that some Channel Islands residents who make a significant number of trips to the UK each year ‘tie themselves up in knots in trying to work out whether or not they are UK resident for tax purposes’.

• See Friday’s JEP for more comments from tax experts

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Pip Clement

March 25, 2011 at 5:13 pm

The budget was a non event even for those living in the UK so it was not surprising that it did not change much in Jersey.
It is obvious that measures will be bought in to control VAT free selling from the island and there will be changes made to control hidden renumeration schemes which will affect parts of the finance industry.
My guess is that George Osborne is philosophically attracted to a simpler tax system with less exemptions and scope for avoidance.

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