Income Tax - Payment of tax by agents and tenants on rentals paid to non Jersey landlords
Updated 11 October 2017
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. Tax advice is available from Customer and Local Services 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 tax. 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.
Customer and Local Services, Phillip Le Feuvre House, La Motte Street, St Helier, Jersey, JE4 8PE
Open: Monday to Friday 9am - 5pm