Jersey agrees to the UK tax package 

The Jersey Government announced today that Jersey is finalising a “FATCA” style agreement with the UK government to enhance its existing tax information exchange arrangements.

John Riva, Head of Tax at KPMG in the Channel Islands, said: “The Tax Package emphasises Jersey’s commitment to supporting the UK Government in the fight against tax evasion.  It is important that the international community continues to recognise Jersey as a jurisdiction that has high levels of compliance. 

“In recognition of the view that a jurisdiction should seek the same information from their own taxpayers that is being asked of another jurisdiction, Jersey has secured agreement of an alternative regime for UK resident but non-domiciled individuals.”

There are four components to the package that has been negotiated:

• An information exchange agreement similar to the Inter-government Agreement that the island is negotiating with the US.

• An alternative reporting arrangement for UK resident but non-domiciled individuals.

• A disclosure facility to enable UK taxpayers to regularise any affairs in Jersey, if necessary.

• Discussions to renegotiate the existing Double Taxation Arrangement with the UK.

The announcement to this Tax Package follows similar announcements from Guernsey, Cayman Islands and the Isle of Man. Whilst the details of the agreement have not been published, it is understood that it follows closely the agreement with the US although Jersey financial institutions will have up to 30 September 2016 to exchange information relating to 2013 and 2014.  Furthermore there will be limitations on the information that is automatically exchanged in relation to UK residents who are not domiciled in the UK and therefore not necessarily subject to UK tax on assets held in Jersey.

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