Citizens Advice Bureau

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LOCAL INFORMATION

12.2.1.L9
Income Tax - Payment of tax by agents and tenants on rentals paid to non Jersey landlords

Extent: Jersey
October 2008
Updated 11 October 2017

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Words you may need to know

 

Agent – someone who acts for somebody else

Certificate - official document stating something eg a qualification or permission

Comptroller of Income Tax – the title of the person who is the head of the Income Tax Office

Deduct - when you take something off eg here, tax due on rent money (see ‘withold’)

Exempt – when rules do not apply

Landlord – owner of property

Non-resident landlord – a landlord who owns property in Jersey but does not live in Jersey

Per annum – each year

Quarter –  when the year is divided into quarters it means January – March; April – June; July – September and October to December.

Register – to sign up, put your name on an official list

Rent / Rental – money paid to the owner of a property by a tenant

Return – here, a list of details of money deducted

Sanction – punishment; penalty

Tenant – someone who lives in or occupies property or accommodation owned by someone else and who pays rent

Tax – money raised by government from individuals and businesses towards public services

Withold – hold or keep back 

 

 

Note: This is a complicated subject. Advice is available from the Taxes Office and the website www.gov.je/TaxesMoney/IncomeTax/Individuals/IncomeTaxCircumstances/Pages/NonResidencyTax.aspx

 

 

From 1st January 2009, agents and tenants must withhold tax at the rate of 20% from rentals paid to Jersey non- resident landlords and pay it directly to the Comptroller of Income Tax.

 

However, if you are a tenant this rule only applies if you pay rent of more than £25,000 per annum (see below).

 

Landlords may choose to ask the Comptroller for a certificate for rent to be paid without deduction of Income Tax.

 

The Comptroller may give a certificate if he is satisfied that the rent is exempt from tax under certain exemptions in the Income Tax Law.  One example of an exemption is where the property is owned by a charity.

 

In addition, if the landlord can show that he has continued to do what the Income Tax Law requires then the Comptroller may give a certificate.

 

Any person who is an agent for a landlord must register with the Comptroller within 30 days of becoming an agent for a landlord. 

 

Agents will need to provide the Comptroller with their name and address and, for each landlord that they act for, information such as the addresses of the landlord's properties, details of the tenants of such properties, the amount of rent paid and whether the landlord has produced a certificate.

 

The agent must keep a record or list of any deductions made for tax purposes. Before the period of 30 days after the end of each quarter the agent must send to the Comptroller an amount equal to the total of all the monies he /she has deducted and kept back for tax purposes in that quarter.  eg Quarter ends 31st March – all deductions must be sent to the Comptroller by 30th April. 

 

In addition, agents must make quarterly returns within 30 days of the end of each quarter and an annual return no later than 31st March each year.  If agents do not do this they commit a criminal offence.  These returns must list all deductions made and monies paid over.

 

If the landlord does not have an agent and the tenant pays rent of more than £25,000 pa the tenant has the same obligations described above to make deductions, submit returns and pay monies over to the Taxes Office. In these cases tenants are liable to the same sanctions for failure to comply.

 

However, it is rare that the tenant is required to act as agent and deduct and account for money.

 

Contact details

Customer and Local Services, Phillip Le Feuvre House, La Motte Street, St Helier, Jersey, JE4 8PE

 T   01534 440300             F   01534 724315       E   This email address is being protected from spambots. You need JavaScript enabled to view it.

Open:  Monday to Friday 9am - 5pm