JERSEY: Jurisdiction to close tax loophole on property transactions.

As published on internationalinvestment.net, Tuesday 25 January, 2022.

Jersey's current arrangement where the purchase of a property through acquisition of a property owning company's share capital is exempt from stamp duty, is about to change.

However, the States of Jersey shortly intends to bring forward legislation to impose a tax equivalent to stamp duty on such a sale, effectively closing the "loophole", international law firm Ogier said in a briefing note.

Guernsey introduced such a measure back in November 2017 in a law which reflects much of the same language as that now proposed in Jersey, the law firm said.

The Law Officers' Department has confirmed that a draft Law has been lodged for debate - the Draft Taxation (Enveloped Property Transactions) (Jersey) 202-.

Following local debate and if approved by the States of Jersey, it will then require Privy Council approval, likely to be discussed at their April meeting which is expected to be held post Easter.

The draft Law will come into effect seven days after registration by the Royal Court, so practically the Law is likely to be brought into force, assuming it is approved, in early May.

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