Draft Finance (2026 Budget) (Jersey) Law 202-

STATES OF JERSEY

DRAFT FINANCE (2026 BUDGET) (JERSEY) LAW 202-

Lodged au Greffe on 27th October 2025 by the Minister for Treasury and Resources Earliest date for debate: 8th December 2025

STATES GREFFE

2025  P.93/2025

DRAFT FINANCE (2026 BUDGET) (JERSEY) LAW 202-

European Convention on Human Rights

In accordance with the provisions of Article 16 of the Human Rights (Jersey) Law 2000, the Minister for Treasury and Resources has made the following statement –

In the view of the Minister for Treasury and Resources, the provisions of the Draft Finance (2026 Budget) (Jersey) Law 202- are compatible with the Convention Rights.

Signed:   Deputy M.E. Millar of St. John , St. Lawrence and Trinity

Minister for Treasury and Resources

Dated:  27th October 2025

REPORT

Report

The Draft Finance (2026 Budget) (Jersey) Law 202- (the "2026 Finance Law") gives effect to the revenue measures in the proposed Budget (Government Plan) 2026-2029 (P.70/2025). It also provides for administrative and technical tax amendments, which are set out in Appendix 4 of the Budget.

The 2026 Finance Law amends:

• the Income Tax (Jersey) Law 1961 (the "Income Tax Law")

• the Customs and Excise (Jersey) Law 1999 (the "Customs Law")

• the Goods and Services Tax (Jersey) Law 2007 (the "GST Law")

• the Stamp Duties and Fees (Jersey) Law 1998 (the "Stamp Duty Law")

• the Taxation (Land Transactions) (Jersey) Law 2009 (the "LTT Law")

• the Taxation (Enveloped Property Transactions) (Jersey) Law 2022 (the "EPTT Law")

The standard rate of income tax

1. Article 1 sets the standard rate of income tax for 2026 at 20%.

Personal tax allowances (Articles 13-17)

2. The long-standing policy is to increase the income tax thresholds by the lower of June RPI and  average earnings.  For 2026, personal income tax  thresholds and allowances are increased by 2.6%, in-line with RPI for June 2025.
3. The single persons' threshold is increased to £21,250. As 2026 is the first year of mandatory independent taxation, all taxpayers are entitled to the single threshold.
4. Child allowance is increased to £3,950 and the additional personal allowance in respect of children is increased to £5,900.
5. The maximum childcare tax relief is increased to £8,050 for children under 12 and £20,950 in respect of under-4s.

Civil penalties for GST (Articles 26-38)

6. The Revenue Administration Law ("the RAL") contains behavioural penalties that may be levied for income tax returns that are materially incorrect.
7. The penalties range from 0% to 150% of the lost tax, depending on whether the inaccuracy was the result of carelessness or deliberate behaviour. The level of penalty is affected by factors such as the degree of cooperation by the taxpayer.
8. Currently, these penalties do not apply to GST returns, which are subject to a separate penalty tax regime under the GST Law.
9. For parity, the penalty tax regime is removed from the GST Law, and GST returns are brought into scope of the civil penalty regime in the RAL.

Customs and excise duties (Articles 22-25)

Alcohol

10. Excise duty on alcohol is increased in line with inflation to limit erosion in its real value over time, following five years of being frozen or held below inflation. To support the hospitality sector and encourage the enjoyment of alcohol in social settings rather than in isolation, the 2026 Finance Law introduces reduced rates of duty for drinks sold on tap from containers of 10 litres or more. This follows similar measures in other jurisdictions designed to keep excise duty simple and efficient. To promote lower-strength choices, "tap relief" is set at 15% below the standard rate for beverages up to 4.9% ABV, and 10% below for stronger products.

Tobacco

11. Tobacco duties are increased above inflation in line with the Government's health policy to reduce tobacco consumption and related harm. Duty on cigarettes and rolling tobacco increases by 7.6% while duty on cigars increases by 10.6% to continue to close the current duty gap between cigars and other types of tobacco.

Vehicle Emissions Duty (VED)

12. The definition of a commercial vehicle is generalised to include buses, coaches and minibuses, as well as a broader range of heavy vehicles used in the construction industry. A new Order making power is created, allowing the Minister to update the definition of lower emission vehicle to ensure Jersey continues to align with UN policy on vehicle emissions. A new definition of a standard vehicle is introduced to align VED definitions with DVS (Driver and Vehicle Standards) legislation.
13. In line with the policy framework and goals of the Carbon Neutral Roadmap, rates of VED on standard vehicles are increased on a sliding scale from 5% for the least polluting vehicles to 25% for vehicles with the highest emissions.
14. VED on commercial vehicles and reduced speed agricultural tractors is increased by inflation (2.6%) to prevent erosion of its real value over time.

Vaping liquid

15. To discourage young non-smokers from taking up vaping, a new excise duty on vaping liquid is introduced. The duty is charged on all vaping liquid, regardless of nicotine content, at a rate of £0.20/ml. The legislation also introduces a duty-free allowance of 50 ml.
16. These provisions on vaping liquid will come into force by Order during 2026.

Fuel

17. Excise duty on fuel is increased in line with inflation, for the first time since the Government Plan 2022-2025. The increase will add around 1.7p to a litre of petrol or diesel. There is no change to the duty on hydrotreated vegetable oil.

Technical and administrative amendments

Income tax changes

18. Article 51 of the Income Tax Law is amended to ensure that profits made by property development trades in respect of Jersey land, however structured, are taxable at 20% under Schedule A.
19. When a person dies, the time limit for making an assessment is 1 year and 1 day from the date of their death. These assessments may be default' assessments (estimated assessments) if a return has not been received within the time limit. The amendment requires the Comptroller to replace the default assessment, once a return has been submitted, to ensure the final assessment accurately reflects the taxpayer's liability.

20. It is clarified that appeals to the Royal Court against determinations made by the Commissioners of Appeal must be made within 21 days, rather than immediately' after the determination. The appealing party must include grounds for appeal within their notice of appeal, and the other party must be informed of the other's appeal.
21. A new Order making power is created to enable the Minister to make procedural rules relating to tax appeals heard by the Commissioners of Appeal. Procedures in any subsequent order will align with those for other tribunals services to create consistency.
22. Provisions to ensure those who were taxed on deemed dividends between years of assessment 2009 and 2012 are not taxed again on this income are moved from Schedule 5 of the Income Tax Law into new Article 88A.
23. It is clarified that income arising from all occupation of land in Jersey, for any purpose other than farming or market gardening, is taxable under Schedule A (20%) rather Schedule
    500. There are no proposed changes to the taxation of income from farming.
24. Taxpayers who receive a dividend from companies taxed under the Income Tax Law can receive a credit for the tax paid by the company on the amount of the dividend. For parity, this is extended to cover dividends from companies taxed under the  Multinational Corporate Income Tax (Jersey) Law 2025 (the MCIT Law'). The exemption from income tax for non-residents receiving dividends from companies taxed under the Income Tax Law is also extended to exempt dividends from companies taxed under the MCIT Law.
25. Relocation expenses incurred by those moving to Jersey that are met by their employer are exempt from tax as a benefit-in-kind. In addition to costs relating to removal storage and travel, the first £7,500 of other miscellaneous expenses are also exempt. From 2026, this is increased to the first £15,000.
26. A new Order-making power is created to enable the Minister for Treasury and Resources to exempt any 100% States-owned entity from income tax.
27. The definition of a relevant trust' is amended to exclude a pension trust as defined by Part 19 of the Income Tax Law.

Changes to other statutes

28. Under the Revenue Administration Law, the Comptroller may offset an overpayment of either income tax or GST against a debt from the other. Following the move of the administration of Social Security contributions to Revenue Jersey, this provision is expanded to include these contributions.
29. The civil penalty regime under the RAL is also expanded to include long-term care contributions, which are collected by Revenue Jersey alongside income tax on behalf of the Minister for Social Security.
30. The definition of group in both the Stamp Duty Law and the LTT Law is amended to ensure there is an element of control in a chain of companies.
31. A one-year reduction in the higher rate of Stamp Duty, LTT and EPTT, from 3-percentage points above the standard to 2-percentage points above the standard, is introduced.

Commencement

32. The 2026 Finance Law will come into force on 1 January 2026, other than Articles 25 and 52 that come into force by Order.
33. The Minister will present an Acte Opératoire following the third reading of the 2026 Finance Law.

Financial and manpower implications

34. The financial and manpower implications of the 2026 Finance Law are identified in the draft Budget proposals in the proposed Budget 2026-2029.

Children's Right Impact Assessment

35. A Children's Right Impact Assessment (CRIA) has been prepared in relation to this proposition and is available to read on the States Assembly website.

Human Rights

36. The notes on the human rights aspects of the draft Law in the Appendix have been prepared by the Law Officers' Department and are included for the information of States Members. They are not, and should not be taken as, legal advice.

APPENDIX TO REPORT Human Rights Notes on the draft Finance (2026 Budget) (Jersey) Law 202-

These Notes have been prepared in respect of the draft Finance (2026 Budget) (Jersey) Law 202- (the "draft Law") by the Law Officers' Department. They summarise the principal human rights issues arising from the contents of the draft Law and explain why, in the Law Officers' opinion, the draft Law is compatible with the European Convention on Human Rights ("ECHR").

These notes are included for the information of States Members. They are not, and should not be taken as, legal advice.

The draft Law sets the standard rate for income tax for 2026 and amends the Income Tax (Jersey) Law 1961 ("the ITL"), the Customs and Excise (Jersey) Law 1999 ("the CE Law"), the Goods and Services Tax (Jersey) Law 2007 ("the GST Law"), the Revenue Administration (Jersey) Law 2019 ("the RAL"), the Stamp Duties and Fees (Jersey) Law 1998 ("the Stamp Duties Law"), the Taxation (Land Transactions) (Jersey) Law 2009 ("the LTT Law"), the Taxation (Enveloped Property Transactions) (Jersey) Law 2022 ("the EPT Law"), the Multinational Corporate Income Tax (Jersey) Law 2025 and the Excise Duty (Relief and Drawback) (Jersey) Order 2000.

The draft Law engages Article 1 of the First Protocol to the ECHR ("A1P1"), which provides for the right to the peaceful enjoyment of property.

Revenue raising measures and economic regulation will in principle engage A1P1 and the draft Law does this in various ways principally by the setting of the rates for income tax, expanding the scope of Schedule A by amending the definitions which apply to it (such that they accord with the previous practice and understanding of how Schedule A is applied), increasing excise duties and making e-liquids subject to excise.

A1P1 is however a qualified right, and the Protocol explicitly provides that the right does not in any way impair the right of the State to enforce such laws as it deems necessary to control the use for property in accordance with the general interest or to secure the payment of taxes or other contributions. Contracting States are given a wide margin of appreciation to determine what it considers in the public interest in this respect.

The European Court of Human Rights has made clear that the purpose of A1P1 is primarily to guard against the arbitrary confiscation of property. None of the provisions are considered to amount to arbitrary confiscation and so it is only in the event that they are "manifestly unreasonable" that they would be in breach of A1P1.

Overall, the provisions are considered to fall within the margin of appreciation afforded to contracting states and to achieve a fair balance. The provisions of the draft Law are therefore considered to be compliant with A1P1.

The draft Law may also engage Article 6 of the ECHR, the right to a fair trial in that it gives the Minister a power to make an Order setting out procedural rules for the Commissioners of Appeal, including potentially a right to strike out an appeal. Given that there is a right of appeal from the Commissioners' determinations to the Royal Court, this is considered sufficient should Article 6 be engaged by any subsequent Order made by the Minister.

It is noted that there are new civil penalty provisions under the RAL (these are part of a move of penalties under the GST Law and a move to standardising revenue-related civil penalties). The are already the ordinary rights of appeal under the RAL and these are considered sufficient for Article 6 purposes.

Overall, the draft Law is considered compliant with the provisions of the ECHR.

EXPLANATORY NOTE

The draft Finance (2026 Budget) (Jersey) Law 202- will, if passed, set the standard rate of income tax for 2026 and amend tax legislation for the purpose of implementing parts of the Budget (Government Plan) 2026-2029.

PART 1

Part 1 (Article 1) provides that income tax is charged for 2026 at the standard rate of 20 pence in the pound.

PART 2

Part 2 (Articles 2 to 21) amends the Income Tax (Jersey) Law 1961 (the "1961 Law"). Introduction

Article 2 provides that Part 2 amends the 1961 Law.

Interpretation

Article 3  amends Article 3 of the 1961 Law. It inserts a definition of the MCIT Law (the Multinational Corporate Income Tax (Jersey) Law 2025), which was in Article 120AB and signposts the definition of relevant MNE group entity that is in that Article.

It also includes amendments to take account of the amendments made to Articles 50 and 51 and the inserted Article 55B, which relate to the disposal of land.

Assessment

Article 4 amends Article 23 to make it clear that the power of the Comptroller to amend an assessment at any time applies despite the time limits in Article 125, which apply to tax returns for the estates of deceased people.

Appeals to the Royal Court

Article 5 amends Article 29, which deals with procedures on appeals. This inserts a power to allow  the  Minister  to  make  an  Order  that  makes  provision  about  proceedings  before  the Commissioners.

Article 6 amends Article 36, which relates to the procedure for appealing to the Royal Court. This provides that the party bringing the appeal must give notice of appeal to the Judicial Greffier, the Commissioners and the other party or parties.

Schedule A

Article 7  amends Article 50 to include definitions of an interest in land and dealing in or developing land in Jersey.

Article 8 amends Article 51 to make provision for the trade of dealing in or developing land in Jersey.

Article 9 inserts new Article 55B. This makes provision to prevent the double assessment of profits and gains arising from the dealing in or developing of land in Jersey.

Schedule D

Article 10 substitutes a new Article 63. This clarifies that the profits and gains arising from the occupation of land in Jersey, other than those arising from farming, are charged to tax under Schedule A (as required by Article 51).

Article 11  inserts a new Article 79A. This provides for a credit for tax arising on the full attribution of deemed dividends or profits that were assessed between 2009 and 2012 under

Articles 81D, 81G or 85F. This is currently included in the transitional provisions in Schedule 5, paragraphs 8 and 10, which are to be repealed on 1 January 2026 by the Income Tax Law (Jersey) Amendment No. 2 Order 2024. The new Article also applies to cases where the liability arising was that of a spouse or civil partner, in a case where the individual is now independently assessed for tax.

Principal provisions as to interest, dividends, distributions, annual payments, etc.

Article 12 inserts a new Article 88A. This allows for a credit if a distribution is declared out of the profits or gains of a relevant MNE group entity and tax is paid under the MCIT Law.

Personal allowances and reliefs

Articles 13 to 17 increase the personal allowances and reliefs in Part 12 of the 1961 Law. Exemptions

Article 18  amends Article 115 to allow the Minister to exempt entities that are directly or indirectly wholly owned by the States or a parish from income tax.

Article 19 amends Article 118B. It includes dividends paid out by a relevant MNE group entity to a person who is not resident in Jersey for which tax has been paid under the MCIT Law and clarifies that a "relevant trust" in paragraph (2) does not include a trust approved under Part 19 of the 1961 Law (which relates to pensions, pension schemes and annuities).

Article 20 deletes paragraph (4) from Article 120AB. This contained the definition of the MCIT Law, which is now in Article 3 of the 1961 Law.

Benefits: exemptions

Article 21 amends Schedule 2, which makes provision for the exemption of certain benefits in kind and emoluments. It amends paragraph 7 to include accommodation occupied by a live-in carer in the exemption for accommodation and increases the amount of relocation expenses set out in paragraph 14 from £7,500 to £15,000.

PART 3

Part 3 (Articles 22 to 25) amends the Customs and Excise (Jersey) Law 1999 (the "Customs and Excise Law").

Article 22 provides that Part 3 amends the Customs and Excise Law.

Article 23 amends Article 1 of the Customs and Excise Law to move a number of definitions that apply only in Schedule 1 into that Schedule.

Article 24 substitutes a new Schedule 1 to update the drafting, increase excise duties for alcohol, tobacco, hydrocarbons and vehicles and to include new excise duties for alcohol subject to tap relief. There are amendments to the provisions relating to vehicles that include buses and coaches as in the excise rates for commercial vehicles, rather than general vehicles.

Article 25 inserts a new paragraph 15A into Schedule 1. This introduces excise duty on e-liquids of 20 pence per millilitre. This comes into force on a day to be specified by the Minister for Treasury and Resources by Order.

PART 4

Part 4 (Articles 26 to 32) amends the Goods and Services Tax (Jersey) Law 2007 to make amendments consequential to the inclusion of GST in the penalty provisions of the Revenue Administration (Jersey) Law 2019. The amendments to provide for this are in Part 5.

PART 5

Part 5 (Articles 33 to 40) amends the Revenue Administration (Jersey) Law 2019. Article 33 provides that Part 5 amends the Revenue Administration (Jersey) Law 2019.

Article 34 amends the sub-heading to Part 4 (civil penalties for inaccurate income tax returns) to remove "income tax", as later amendments provide that a penalty may be imposed in relation to inaccuracies in other.

Article 35 amends the exceptions to the prohibition on sharing tax information to include a person's liability to pay tax under the MCIT Law to the purposes for which information may be shared the Minister for Social Security.

Articles 36 to 40 make amendments to include GST and long-term care contributions in the provisions allowing a penalty to be imposed.

PART 6

Part 6 (Articles 41 to 43) amend the Stamp Duties and Fees (Jersey) Law 1998. Article 41 provides that Part 6 amends the Stamp Duties and Fees (Jersey) Law 1998.

Article 42 amends the definition of "group" in Article 1 to make it clear that all the subsidiaries of a holding company must be controlled by it for them to constitute a group for the purposes of the Law.

Article 43 amends Schedule 1 to include a reduction in the higher rate of stamp duty for second homes for the year 2026.

PART 7

Part 7 (Articles 44 to 46) amends the Taxation (Land Transactions) (Jersey) Law 2009.

Article 44 provides that Part 7 amends the Schedule to the Taxation (Land Transactions) (Jersey) Law 2009.

Article 45 amends paragraph 5 of the Schedule to include a reduction in the higher rate of tax for second homes for the year 2026.

Article 46  amends  the  definition of "group"  in paragraph 9A to make it clear that all the subsidiaries of a holding company must be controlled by it for them to constitute a group for the purposes of the Law.

PART 8

Part 8 (Articles 47 to 49)  amends the Taxation (Enveloped Property Transactions) (Jersey) Law 2022 to include a reduction in the higher rate of tax for second homes for the year 2026.

PART 9

Part 9 (Articles 50 to 52) amends the Multinational Corporate Income Tax (Jersey) Law 2025.

Article 50  provides that Part 9 amends the Multinational Corporate Income Tax (Jersey) Law 2025.

Article 51  amends Article 1 to amend the definition of OECD commentary to refer to the consolidated commentary published on 9 May 2025 and to remove the definition of the OECD June guidance.

Article 52 amends Article 7 so that the definition of "securitisation entity" refers to the updated OECD commentary.

PART 10

Part 10 (Article 53) amends the Excise Duty (Relief and Drawback) (Jersey) Order 2000 to include relief on e-liquids.

PART 11

Part 11 (Article 54) contains the citation and commencement provisions. Articles 25 and 52 come into force on a day to be specified by the Minister of Treasury and Resources by Order. The rest of the Law comes into force on 1 January 2026.

DRAFT FINANCE (2026 BUDGET) (JERSEY) LAW 202-

Contents

DRAFT FINANCE (2026 BUDGET) (JERSEY) LAW 202-

A LAW to set the standard rate of income tax for 2026 and to implement parts of the Budget (Government Plan) 2026-2029 by amending the Income Tax (Jersey) Law 1961, the  Customs  and  Excise  (Jersey)  Law 1999,  the  Goods  and  Services  Tax  (Jersey) Law 2007, the Revenue Administration (Jersey) Law 2019, the Stamp Duties and Fees (Jersey) Law 1998, the Taxation (Land Transactions) (Jersey) Law 2009, the Taxation (Enveloped Property Transactions) (Jersey) Law 2022 and other legislation.

Adopted by the States  [date to be inserted] Sanctioned by Order of His Majesty in Council  [date to be inserted] Registered by the Royal Court  [date to be inserted] Coming into force  [date to be inserted]

THE STATES, subject to the sanction of His Most Excellent Majesty in Council, have adopted the following Law –

PART 1

STANDARD RATE OF INCOME TAX SET FOR 2026 1  Standard rate of income tax for 2026

Income tax is levied and charged for the year 2026 at the standard rate of 20 pence in the pound, in accordance with and subject to the Income Tax (Jersey) Law 1961.

PART 2

INCOME TAX (JERSEY) LAW 1961 AMENDED DIVISION 1 – INTRODUCTION

2  Income Tax (Jersey) Law 1961 amended

This Part amends the Income Tax (Jersey) Law 1961.

DIVISION 2 – INTERPRETATION

3  Article 3 (general provisions as to interpretation) amended

1. In Article 3(1) –

1. after the definition "marginal income deduction" there is inserted –

"MCIT  Law"  means  the  Multinational  Corporate  Income  Tax  (Jersey) Law 2025;

2. after the definition "relevant distribution" there is inserted –

"relevant MNE group entity" has the meaning given in Article 120AB;

2. In Article 3(1) –

1. in paragraph (d)(i) of the definition "earned income", "(which relate to profits or gains from the trades of disposal or exploitation of land in Jersey)" is deleted;
2. in the definition "trade", "every disposal, on a commercial basis, of land, any building or structure, or any part thereof, and" is deleted.

3. Article 3(1A) is deleted.

DIVISION 3 – ASSESSMENT

4  Article 23 (provision for making assessments where no returns are received)

amended

After Article 23(2) there is inserted –

(3)  Paragraph (2) applies despite the time limit in Article 125(2).

DIVISION 4 – APPEALS TO ROYAL COURT

5  Article 29 (procedure on appeals) amended

After Article 29(7) there is inserted –

8. The Minister may by Order make provision about the proceedings before the Commissioners.
9. An  Order  made  under  paragraph (8)  may  include  provision  about  the following –

1. striking out of appeals;
2. the determination of preliminary or incidental matters.

6  Article 36 (appeals to the Royal Court) amended

In Article 36 –

(a)  for paragraphs (1) and (2) there is substituted –

1. After the determination by the Commissioners of an appeal under this Law, either party, if dissatisfied with the determination, may give notice of appeal.

(1A)  The dissatisfied party must –

1. give notice to the Judicial Greffier, the Commissioners and the other party  to  the  appeal  within  21 days,  starting  on  the  date  of  the determination; and
2. include with the notice the grounds on which the appeal is being brought.

2. If notice of appeal is not given within the time specified in paragraph (1A)(a), the determination of the Commissioners is final.

2. in paragraph (3), for "shall" there is substituted "must";
3. in paragraph (4), for "shall lie" there is substituted "lies".

DIVISION 5 – SCHEDULE A

7  Article 50 (interpretation of Part 8) amended

1. This Article amends Article 50.
2. The paragraph is renumbered as paragraph (1).
3. In the renumbered paragraph (1), before the definition "land" there is inserted –

"dealing in or developing land in Jersey" means 1 or more of the following activities –

1. the acquisition or disposal of interests in land in Jersey;
2. developing land in Jersey for the purpose of disposing of interests in the land;

"interest in land" –

1. includes –

1. an interest in land that does not confer an exclusive right to occupy; and
2. part of an interest; but

2. does not include an interest held by a person as a bare nominee or a bare trustee;

4. After the renumbered paragraph (1) there is inserted –

(2)  For the purposes of the definition "dealing in or developing land in Jersey", a person acquires or disposes of an interest in land in Jersey if –

1. the person directly acquires or disposes of the interest in land; or
2. the person acquires or disposes of an interest in a company or another body of persons, or a trust, partnership, limited liability company or foundation, that holds (directly or indirectly) the interest in the land.

8  Article 51 (Schedule A) amended

1. This Article amends Article 51.
2. For paragraph (1)(b) there is substituted –

(b)  the annual profits or gains arising or accruing from transactions carried out in the course of the trade of dealing in or developing land in Jersey;

3. For paragraph (2) there is substituted –

(2)  In paragraph (1)(b), the reference to a transaction includes –

1. the sale, transfer or lease of the land; and
2. any other transaction resulting in –

1. the disposal of an interest in the land; or
2. the disposal of an interest in a company or another body of persons, or a trust, partnership, limited liability company or foundation, that holds (directly or indirectly) the interest in the land.

9  Article 55B (provision against double assessment: dealing in or developing land

in Jersey) inserted

After Article 55A there is inserted –

55B  Provision against double assessment: dealing in or developing land in Jersey

1. This Article applies if, on the application of a person assessed to tax on the profits or gains arising or accruing from a particular transaction carried out in the course of dealing in or developing land in Jersey, the profits or gains have been assessed more than once.
2. The Comptroller must –

1. amend  or  set  aside  1  or  more  of  the  assessments  (the  "original assessments") to ensure that the same profits or gains are not taxed more than once;
2. give written notice to each person assessed that 1 or more of the original assessments has been amended or set aside; and
3. if payment has been made in respect of an assessment that is amended or set aside, repay the amount of the overpayment (if any).

3. The Comptroller must not amend or set aside an assessment more than 2 years after the filing due date.
4. Articles 24(3) and 25 apply in relation to an amended assessment as they apply in relation to the original assessments.
5. In paragraph (3), "filing due date" has the same meaning as in Article 24. DIVISION 6 – SCHEDULE D

10  Article 63 (farming and other commercial occupation of land in Jersey to be

charged under Schedule D) substituted

For Article 63 there is substituted –

63  Farming of land in Jersey to be charged under Schedule D

1. All farming in Jersey is treated as the carrying on of a trade or of a part of a trade and the profits or gains are to be charged to tax under Case I of Schedule D.
2. In this Article –

"farming" means the occupation of land in Jersey wholly or mainly for the purposes of husbandry, including market gardening;

"market gardening" means the occupation of land in Jersey as a nursery or garden for the sale of produce.

11  Article 79A (credit for tax paid on full attribution of deemed dividends) inserted

After Article 79 there is inserted –

79A  Credit for tax paid on full attribution of deemed dividends

1. This Article applies if an individual satisfies the conditions in paragraph (2).
2. The conditions are that –

1. the individual had a liability to pay tax in a year of assessment between 2009 and 2012 (inclusive) in respect of –

1. a deemed dividend assessable under Article 81D or Article 81G as it was in force for that year of assessment; or
2. a company's profits under Article 85F as it was in force for that year of assessment;

2. the individual has received a dividend assessable under Case III that derives from the profits that were assessed on the individual under Article 81D or 81G or under Article 85F; and
3. those profits –

1. have not already been distributed to the individual; and
2. have not resulted in a claim for a tax credit by the individual or any other person in a previous year of assessment.

3. In paragraph (2)(a), a reference to an individual includes the individual's spouse or civil partner if that spouse or civil partner had a liability to pay tax under Article 121 or 122B (as they were in effect prior to 1 January 2025) and profits were assessed on them under Article 81D or 81G or under Article 85F.
4. If this Article applies, a tax credit at the standard rate is offset against the individual's  liability  to  tax  in  respect  of  the  dividend  referred  to  in paragraph (2)(b) to the extent referred to in paragraph (2)(c).
5. This Article does not apply to an assessment on an amount based on the assessable profits of a company under Article 134A or Schedule D Case IIA.

DIVISION 7 – PRINCIPAL PROVISIONS AS TO INTEREST, DIVIDENDS, DISTRIBUTIONS, ANNUAL PAYMENTS, ETC.

12  Article 88A (distributions from MNE group entity) inserted

After Article 88 there is inserted –

88A  Distributions from MNE group entity

1. This Article applies if a distribution is declared out of the profits or gains charged to tax of a relevant MNE group entity under the MCIT Law.
2. If this Article applies, the person chargeable to tax on the distribution under this Law is entitled to a credit and the amount of tax that person is liable to pay in respect of the distribution is reduced by the amount of the credit.
3. The amount of the credit is calculated by the Comptroller on a just and reasonable basis.

DIVISION 8 – PERSONAL ALLOWANCES AND RELIEFS

13  Article 92A (exemption from income tax for individuals whose income is not

over the exemption threshold) amended

In  Article 92A(2),  in  the  definition  "low  income  threshold",  for  "£20,700"  there  is substituted "£21,250".

14  Article 92B (increase in exemption threshold for certain child care payments)

amended

In Article 92B(8) –

1. in the definition "maximum increase" –

1. in  sub-paragraphs  (a)  and  (b),  for  "£20,400"  there  is  substituted "£20,950";
2. in sub-paragraph (c), for "£7,850" there is substituted "£8,050".

2. in the definition "qualifying income", in sub-paragraph (b)(ii), for "£5,750" there is substituted "£5,900".

15  Article 92C (marginal rate of tax) amended

In Article 92C, in the heading, for "rate of tax" there is substituted "relief". 16  Article 95 (children) amended

In Article 95(1) and (4), for "£3,850" there is substituted "£3,950".

17  Article 98A (additional allowance in respect of children) amended

In Article 98A(1A), for "£5,750" there is substituted "£5,900".

DIVISION 9 – EXEMPTIONS

18  Article 115 (miscellaneous exemptions) amended

In Article 115 –

1. the paragraph is renumbered as paragraph (1);
2. after the renumbered paragraph (1) there is inserted –

(2)  The Minister may by Order exempt entities that are directly or indirectly 100% owned by the States or a parish.

19  Article 118B (exemption of certain income, profits or gains of a non-resident)

amended

In Article 118B –

(a)  after paragraph (1)(i) there is inserted –

(j)  dividends paid out by a relevant MNE group entity for which tax has been paid under the MCIT Law.

(b)  in paragraph (2), for the definition "relevant trust" there is substituted – "relevant trust" means a trust that –

1. is managed by a trustee resident in Jersey and that is –

1. a  Jersey  trust  as  defined  in  Article 1  of  the  Trusts  (Jersey) Law 1984; or
2. a foreign trust as defined in that Article; but

2. is not a trust that is approved under any provision of Part 19 of this Law;

20  Article 120AB (relevant MNE group entities) amended

Article 120AB(4) is deleted.

DIVISION 10 – BENEFITS: EXEMPTIONS

21  Schedule 2 (benefits: exemptions) amended

In Schedule 2 –

1. in paragraph 7 (accommodation), after clause (b) there is inserted –

(c)  accommodation that is occupied by the office holder or employee to allow them to provide care to a person occupying those premises.

2. in paragraph 14(b) (relocation expenses), for "£7,500" there is substituted "£15,000".

PART 3

CUSTOMS AND EXCISE (JERSEY) LAW 1999 AMENDED

22  Amendment of the Customs and Excise (Jersey) Law 1999

This Part amends the Customs and Excise (Jersey) Law 1999.

23  Article 1 (interpretation) amended

In Article 1 –

1. for the definition in column 1 there is substituted the definition in column 2 –

2. after the definition "Treaties" there is inserted – "vehicle emissions duty" is defined in paragraph 2 of Schedule 1;
3. the following definitions are deleted –

1. "connected";
2. "leaded petrol";
3. "tobacco";
4. "unleaded petrol".

24  Schedule 1 (excise duties) substituted For Schedule 1 there is substituted –

SCHEDULE 1

EXCISE DUTIES (Articles 2 and 38)

PART 1 STRENGTH OF LIQUOR

1  Strength of liquor

1. Unless paragraph 2 or 3 applies, the strength of liquor is determined as follows –

1. a representative sample is taken, cleared of any sediment or gas by filtration in an approved manner and a definite quantity of the sample measure at 20°C is distilled;
2. the distillate is made up at the temperature of 20°C with distilled water to the original measure before distillation;
3. the  strength  of  the  distillate  made  up  under  sub-paragraph (b)  is ascertained by determining its density in air at the temperature of 20°C using an approved hydrometer in an approved manner; and
4. the strength of the liquor is –

1. the percentage of alcohol by volume in an approved alcohol table that corresponds to the density determined; or
2. if the density determined is between 2 consecutive numbers in the table, determined by linear interpolation.

2. If the  result ascertained  by the method in sub-paragraph (1) is rendered inaccurate by substances other than alcohol, the method is adjusted in a manner approved by the Minister to produce an accurate result.
3. Unless the Minister otherwise allows, the strength of any liquor is the strength ascertained under this paragraph, but if the strength has not been ascertained under this paragraph it is the greater of –

1. the strength ascertained by reference to the information on the label of the liquor's container; or
2. the strength ascertained by reference to the information on an invoice, delivery note, production record or similar document relating to the liquor.

PART 2

GOODS CHARGEABLE WITH EXCISE DUTY AND RATES OF DUTY

DIVISION 1 – INTERPRETATION

2  Interpretation

1. In this Schedule –

"beer" means any liquor of a strength exceeding 1.2% volume obtained from the fermentation of worts prepared from cereals and any mixture of beer with a non-alcoholic drink;

"cider" means cider or perry of a strength exceeding 1.2% volume but not exceeding 8.6% volume obtained from the fermentation of apple or pear juice;

"connected", in the definitions "independent brewer", "independent cider- maker" and "independent distiller" has the same meaning as in the Income Tax (Jersey) Law 1961 (see Article 3A of that Law);

"distilled spirits" means spirits that are produced or manufactured by a person by –

1. distilling, with a still, fermented agricultural products; or
2. distilling, with a still, other spirits that are obtained but not produced by that person;

"independent brewer" means a person who –

1. brews beer;
2. is not connected with any other person who brews beer; and
3. uses premises physically separate from those used by any other person to brew beer;

"independent cider-maker" means a person who –

1. makes cider;
2. is not connected with any other person who makes cider; and
3. uses premises physically separate from those used by any other person to make cider;

"independent distiller" means a person who –

1. distils spirits;
2. is not connected with any other person who distils spirits; and
3. uses premises physically separate from those used by any other person to distil spirits;

"made-wine"  means  any  liquor  of  a  strength  exceeding  1.2%  volume produced by the fermentation of any substance except –

1. beer;
2. wine; or
3. cider with a strength not exceeding 8.6% volume;

"% volume" means the percentage of alcohol in the liquor determined in accordance with Article 2;

"per litre of alcohol" means the quantity of alcohol in the liquor determined in accordance with Article 2;

"reference period", in sub-paragraphs (2), (3) and (4), means the calendar year in which the spirits wines, beer and cider are produced or manufactured;

"spirits" means potable spirits of a strength exceeding 5.5% volume;

"vehicle emissions duty" means the excise duty payable as described in Article 38(3) or (5);

"wine" means any liquor of a strength exceeding 1.2% volume obtained from the fermentation of fresh grapes or the must of fresh grapes, whether or not it is fortified with spirits or flavoured with aromatic extracts;

"wines" means wine and made-wine.

2. A person is a "small independent brewer" in relation to beer produced or manufactured by the person if –

1. the person is an independent brewer; and
2. the total amount of beer produced or manufactured by the person during the reference period does not exceed 200,000 hectolitres.

3. A person is a "small independent cider-maker" in relation to cider produced or manufactured by the person if –

1. the person is an independent cider-maker; and
2. the total amount of cider produced or manufactured by the person during the reference period does not exceed 500,000 litres.

4. A person is a "small independent distiller" in relation to distilled spirits produced or manufactured by the person if –

1. the person is an independent distiller; and
2. the total amount of alcohol contained in distilled and other spirits produced or manufactured by the person during the reference period does not exceed 20,000 litres.

DIVISION 2 – ALCOHOL: STANDARD RATES

3  Application

This Division applies in relation to goods described in the following paragraphs, other than goods that qualify for tap relief under Division 3.

4  Spirits and spirits-based drinks that do not qualify for tap relief

There is charged –

1. on all distilled spirits produced or manufactured by a small independent distiller and imported into or produced or manufactured in Jersey, excise duty at the rate of £23.32 per litre of alcohol;
2. on all other spirits (including other distilled spirits) imported into or produced or manufactured in Jersey, excise duty at the rate of £45.64 per litre of alcohol; and
3. on spirits-based products that are ready-to-drink and imported into or produced or manufactured in Jersey, excise duty at the rate of £46.64 per litre of alcohol.

5  Wines that do not qualify for tap relief

There is charged on all wines imported into or produced or manufactured in Jersey, excise duty at the following rates –

6  Beer that does not qualify for tap relief

1. There is charged on all beer, produced by a small independent brewer, that is imported into or produced or manufactured in Jersey, excise duty at the rate of –

2. There is charged on all other beer imported into or produced or manufactured in Jersey, excise duty at the rate of –

7  Cider that does not qualify for tap relief

1. There is charged on all cider, produced by a small independent cider-maker, that is imported into or produced or manufactured in Jersey, excise duty at the rate of –

2. There is charged on all other cider imported into or produced or manufactured in Jersey, excise duty at the rate of –

8  Other alcoholic beverages that do not qualify for tap relief

There  is  charged  on  all  alcoholic  beverages  imported  into  or  produced  or manufactured in Jersey (other than wines, beer or cider) exceeding 1.2% volume but not exceeding 5.5% volume, excise duty at the rate of £46.64 per litre of alcohol.

DIVISION 3 – ALCOHOL: TAP RELIEF RATES

9  Application

1. This Division applies in relation to goods that qualify for tap relief.
2. The following goods "qualify for tap relief" –

1. a spirits-based product that is ready-to-drink and, at the time that excise duty is charged, is packaged in a container with a capacity of at least 10 litres;
2. wines that, at the time that excise duty is charged, are packaged in a container with a capacity of at least 10 litres;
3. beer and cider that, at the time that excise duty is charged, is packaged in a container with a capacity of at least 10 litres.

3. Goods do not qualify for tap relief if they are transferred to smaller containers for a purpose other than the serving of a beverage for immediate consumption on the same premises.

10  Spirits-based drinks qualifying for tap relief

1. There is charged on all spirits-based products that are ready-to-drink and that are produced or manufactured by a small independent distiller and imported into or produced or manufactured in Jersey, excise duty at the rate of –

2. There is charged on all other spirits-based products that are ready-to-drink and that are produced or manufactured in or imported into Jersey, excise duty at the rate of –

11  Wines qualifying for tap relief

There is charged on all wines imported into or produced or manufactured in Jersey, excise duty at the following rates –

12  Beer qualifying for tap relief

1. There is charged on all beer, produced by a small independent brewer, that is imported into or produced or manufactured in Jersey, excise duty at the rate of –

2. There is charged on all other beer imported into or produced or manufactured in Jersey, excise duty at the rate of –

13  Cider qualifying for tap relief

1. There is charged on all cider, produced by a small independent cider-maker, that is imported into or produced or manufactured in Jersey, excise duty at the rate of –

2. There is charged on all other cider imported into or produced or manufactured in Jersey, excise duty at the rate of –

14  Other alcoholic beverages qualifying for tap relief

There  is  charged  on  all  alcoholic  beverages  imported  into  or  produced  or manufactured in Jersey (other than wines, beer or cider), excise duty at the rate of –

DIVISION 4 – TOBACCO

15  Tobacco

1. In this paragraph, "tobacco" includes any product of the tobacco plant or any substance used as a substitute for tobacco.
2. There  is  charged  on  all  tobacco  imported  into  or  grown,  produced  or manufactured in Jersey, excise duty at the following rates –

DIVISION 5 – HYDROCARBON OIL

16  Hydrocarbon oil

1. In this paragraph –

"higher octane ultra low sulphur petrol" means ultra low sulphur petrol that has a research octane number that is not less than 96 and a motor octane number that is not less than 86;

"hydrotreated vegetable oil" means oil that meets the conditions in sub- paragraph (2);

"other types of hydrocarbon oil" includes blended oils that are not ultra low sulphur petrol (including higher octane ultra low sulphur petrol), ultra low sulphur diesel or hydrotreated vegetable oil;

"ultra low sulphur diesel" means gas oil the sulphur content of which does not exceed 0.005% by weight;

"ultra low sulphur petrol" means unleaded petrol the sulphur content of which does not exceed 0.005% by weight;

"unleaded petrol" means petrol containing not more than 0.013 g of lead per litre.

2. For the purposes of the definition "hydrotreated vegetable oil", oil meets the conditions in this sub-paragraph if it –

1. is a liquid hydrocarbon produced from sustainable, renewable sources of –

1. vegetable oil;
2. waste food; or
3. animal processing by-products;

2. conforms to Standard EN 15940:2023 of the European Committee for Standardisation but does not contain Fatty Acid Methyl Esters (FAME); and
3. carries  the  International  Sustainability  and  Carbon Certification  or another certification of sustainability that the Agent of the Impôts is satisfied is equivalent.

3. There is charged on hydrocarbon oil imported or delivered into or produced in Jersey, excise duty at the following rates –

DIVISION 6 – VEHICLES

17  Motor vehicles – standard vehicles

1. In this paragraph –

"established CO2 mass emission figure" means, in relation to a vehicle, the grams per kilometre of carbon dioxide emitted by the vehicle, established in accordance with sub-paragraphs (2) and (3);

"standard vehicle" means –

1. a motor vehicle designed and constructed for the carriage of passengers and consisting of no more than 8 seats in addition to the driver's seat;
2. a  motor  cycle  as  defined  in  Article 1(1)  of  the  Motor  Vehicles (Construction and Use) (Jersey) Order 1998;
3. a  motor caravan  as defined  in  Article 1(1) of the  Motor Vehicles (Construction and Use) (Jersey) Order 1998;
4. an agricultural tractor as defined in Article 1 of the Motor Vehicle Registration (General Provisions) (Jersey) Order 1993 that is not a restricted speed agricultural tractor as defined in paragraph 19(1) of this Schedule.

2. The CO2 mass emission figure for a standard vehicle is established when the vehicle is first registered in Jersey and is the figure specified in a document produced  in  accordance  with  the  requirements  for  registration  that  are prescribed under Part 2 of the Motor Vehicle Registration (Jersey) Law 1993.
3. If more than 1 CO2 mass emission figure is specified in a document described in sub-paragraph (2), the CO2 mass emission figure established for the motor vehicle is –

1. the figure that was arrived at using the Worldwide Harmonised Light Vehicles Test Procedure ("WLTP") as set out in the United Nations Economic  Commission  for  Europe  Global  Technical  Regulation No. 15, as amended from time to time; or
2. if no figure was arrived at using the WLTP –

1. the figure specified as the combined figure or, if there is more than 1 combined figure, the highest of them; or
2. if there is no combined figure, the highest figure specified.

4. For motor vehicles (other than commercial vehicles) that have an established CO2 mass emission figure, vehicle emissions duty is charged at the following rates for the year in which it is payable –

5. For motor vehicles (other than commercial vehicles) that have an established CO2 mass emission figure, vehicle emissions duty is charged at the following rates for the year in which it is payable –

18  Motor vehicles – commercial vehicles

1. In this paragraph –

"commercial vehicle" means a vehicle that is not a standard vehicle as defined in paragraph 17(1) and is not a restricted-speed agricultural tractor as defined in paragraph 19(1);

"established CO2 mass emission figure" means has the meaning given in paragraph 17(1);

"lower emission vehicle" means a vehicle that complies with the Euro 5 emission limits set out in Annex I, Table 1 of Regulation 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information (OJ L 171, 29.6.2007, p. 1).

2. The Minister may by Order amend the definition of "lower emission vehicle".
3. For commercial vehicles that have an established CO2 mass emission figure, vehicle emissions duty is charged at the following rates –

4. For commercial vehicles that do not have an established CO2 mass emission figure, vehicle emissions duty is charged at the following rates –

19  Restricted speed agricultural tractors

1. In this paragraph, "restricted speed agricultural tractor" means a motor vehicle that –

1. is  not constructed itself to carry any load, other than  water, fuel, accumulators and other equipment used for the purpose of propulsion, loose tools and loose equipment;
2. is designed and used primarily for work in connection with agriculture;
3. is driven on a road only when proceeding to and from the site of such work and that when so driven hauls nothing more than land implements or an agricultural trailer; and
4. has a maximum speed of 26 miles per hour.

2. The rate of vehicle emissions duty charged on a restricted speed agricultural tractor is –

1. if the tractor has not, at any time, been registered outside Jersey, the amount (if any) specified in column 2 of the table for the cylinder capacity of the tractor's engine specified in column 1;

2. if the tractor was registered outside Jersey, the amount (if any) specified in column 3, 4 or 5 of the table, according to when the tractor was first registered outside Jersey, for the cylinder capacity of the tractor's engine specified in column 1.

25  Excise duty: e-liquids

In Schedule 1, Part 2, Division 4 –

1. in the heading, after "tobacco" there is inserted "and e-liquids";
2. after paragraph 15 there is inserted –

15A E-liquids

1. There is charged on all e-liquids imported into, produced or manufactured in Jersey, excise duty at the rate of £0.20 per millilitre.
2. In this paragraph –

"e-liquid" –

1. means liquid (whether or not it contains nicotine) that can be used without further processing or modification in an e-liquid inhalation product; but
2. does not include a cannabis-based product that is listed in Schedule 2, paragraph 10 of the Misuse of Drugs (General Provisions) (Jersey) Order 2009;

"e-liquid inhalation product" means –

1. a vape within the meaning of Article 1 of the Single-Use Plastics etc. (Restrictions) (Jersey) Law 2021;
2. a device that can be used for e-liquid vapour to be inhaled through a mouthpiece (irrespective of whether the device would also enable any other substance to be so inhaled); or
3. a cartridge that is capable of containing an e-liquid and capable of forming part of a device referred to in clause (b).

PART 4

GOODS AND SERVICES TAX (JERSEY) LAW 2007 AMENDED

26  Goods and Services Tax (Jersey) Law 2007 amended

This Part amends the Goods and Services Tax (Jersey) Law 2007.

27 Articles 71 (penalty tax where conduct involving dishonest) and Article 72

(liability of partners and officers for penalty tax where corporate dishonesty)

deleted

Articles 71 and 72 are deleted.

28 Article 73 (penalty tax if failure to notify of unauthorized issue of invoices)

amended

In Article 73(3), for "or is assessed to penalty tax referred to in Article 71 because of any conduct" there is substituted "or is served notice of a penalty under Part 4 of the Revenue Administration (Jersey) Law 2019 because of any conduct".

29 Article 74 (surcharge if GST not paid or return not made) amended

In Article 74(3), for "Article 71 or 73" there is substituted "Article 73".

30  Article 78 (time limits on assessments) amended

In Article 78 –

1. in  paragraph (3),  for  "Article  71(4),  75,  76  or  77"  there  is  substituted "Article 75, 76 or 77";
2. in paragraph (4), "(except under Article 71(4))" is deleted;
3. for paragraph (5) there is substituted –

(5)  An assessment of GST may be made at any time if it is required due to a deliberate action or inaction by the taxable person.

31  Article 84 (appeal against decisions) amended

In Article 84(2), sub-paragraphs (o), (p) and (q) are deleted.

32  Article 85 (application of Part 6 of Income Tax (Jersey) Law 1961)

In Article 85(1), after "the Income Tax (Jersey) Law 1961 shall apply" in the first place it occurs there is substituted "the Income Tax (Jersey) Law 1961, or an Order made under Article 29(8) of that Law, applies".

PART 5

REVENUE ADMINISTRATION (JERSEY) LAW 2019 AMENDED

33  Revenue Administration (Jersey) Law 2019 amended

This Part amends the Revenue Administration (Jersey) Law 2019. 34  Article 8 (general prohibitions and exceptions) amended

In Article 8(3)(a)(i), for "or Enveloped Property Transactions Tax Law" there is substituted ", Enveloped Property Transactions Tax Law or MCIT Law".

35  Part 4 (civil penalties for inaccurate income tax returns) sub-heading amended

In the sub-heading of Part 4, "income tax" is deleted.

36  Article 10 (interpretation) substituted

For Article 10 there is substituted –

10  Interpretation

In this Part –

"act" means the conduct described in Article 11(1); "difference" means –

1. in relation to tax, the difference between the amount of tax that would be chargeable on the person calculated on the basis of the incorrect return and the amount of tax that would be chargeable if the return were correct; and
2. in relation to LTC contributions, the difference between the amount of LTC contributions due on the basis of the incorrect income tax return and the amount of LTC contributions that would be due if the income tax return were correct;

"GST return" means any particulars, return, declaration, accounts, statement, list or similar that a person provides to the Comptroller under or for any of the following –

1. Article 40 of the GST Law;
2. Schedule 1 to the GST Law;
3. Schedule 8, paragraph 18 of the GST Law;
4. any other purpose under the GST Law;

"income tax return" means any particulars, return, declaration, accounts, statement, list or similar that a person provides to the Comptroller under or for any of the following –

1. Article 16 of the Income Tax Law;
2. a claim for an allowance, deduction or relief under the Income Tax Law;
3. ascertainment by the Comptroller of the person's liability to income tax;
4. any other purpose under the Income Tax Law;

"notice" means a notice served under Article 13(1);

"return" means –

1. a GST return;
2. an income tax return;

"tax" means income tax or GST.

37  Article 10A (liability of partners and officers) inserted

After Article 10 there is inserted –

10A  Liability of partners and officers

1. This Article applies if the Comptroller has reasonable cause to believe a body mentioned in paragraph (2) is liable to a penalty in relation to a GST return and the act giving rise to the penalty was, in whole or in part, attributable to the carelessness or deliberate action of a person mentioned in paragraph (3).
2. The entities are –

1. an association treated as a person under Article 12 of the GST Law ("association");
2. a partnership or a limited liability partnership;
3. a body corporate.

3. The person is –

1. in relation to a partnership or limited liability partnership, a member of that partnership;
2. in relation to an association or body corporate, a director, manager, secretary or other similar officer of the association or body corporate;
3. any  person  purporting  to  operate  in  a  capacity  listed  in  sub- paragraph (a) or (b).

4. If this Article applies, the Comptroller may recover from the person referred to in paragraph (3) an administrative penalty.

38  Article 13 (administration of penalty) amended

In Article 13 –

1. in paragraph (1)(a) and (b), after "amount of tax that would be chargeable" there is inserted "or LTC contributions due";
2. in paragraph (3) –

1. after "the Income Tax Law" in both places there is inserted "or GST Law";
2. in sub-paragraph (b), for "that Law" there is substituted "the Income Tax Law".

39  Article 15 (effect of notice on prosecution proceedings) amended

In Article 15(1) and (2), after "Article 137 of the Income Tax Law" there is inserted "or Article 88 or 89 of the GST Law".

40  Article 21A (set-off) amended

In Article 21A –

(a)  for paragraph (1) there is substituted –

(1)  This Article applies if –

1. a person does not pay by the deadline for payment –

1. an amount that the person is liable to pay under the Income Tax Law or the GST Law; or
2. a Class 1 or Class 2 contribution due under the Social Security Law; and

2. the person is entitled to a refund or credit issued by the Comptroller under the Income Tax Law, the GST Law or the Social Security Law.

(b)  for paragraph (4) there is substituted –

(4)  This Article applies in respect of –

1. all amounts a person is liable to pay under the Income Tax Law or the GST Law, including amounts of LTC contributions, penalties, interest and other charges;
2. Class 1 and Class 2 contributions due under the Social Security Law and  any  penalties,  interest  and  other  charges  relating  to  those contributions.

PART 6

STAMP DUTIES AND FEES (JERSEY) LAW 1998 AMENDED

41  Stamp Duties and Fees (Jersey) Law 1998 amended

This Part amends the Stamp Duties and Fees (Jersey) Law 1998. 42  Article 1 (interpretation) amended

In Article 1, in the definition "group", after "1 or more of its subsidiaries" there is inserted "that are each controlled by the holding company".

43  Schedule 1 (judicial fees) amended

In Schedule 1, after paragraph 2A there is inserted –

2B  Bands relating to value in item 13 in 2026

1. This paragraph applies for stamp duty payable in 2026.
2. The table set out in this sub-paragraph is to be read as included instead of the table in paragraph 2A in each paragraph of item 13 where there is an entry "See table in paragraph 2A".

3. Paragraph (l)(1) of item 13 applies as if –

1. in clause (i)(B), "£3.50" is "£2.50";
2. in clause (ii)(B) –

1. "£3,500" is "£2,500"; and
2. "£3.75" is "£2.75".

PART 7

TAXATION (LAND TRANSACTIONS) (JERSEY) LAW 2009 AMENDED

44  Schedule (value of transaction and rate of LTT applicable) to the Taxation (Land

Transactions) (Jersey) Law 2009 amended

This Part amends the Schedule to Taxation (Land Transactions) (Jersey) Law 2009.

45  Paragraph 5 (properties that are not main residences) amended

After paragraph 5(3) there is inserted –

4. Despite sub-paragraph (3), for the year 2026, the rate of LTT applicable to a transaction to which this paragraph applies is £90 plus the amount found in accordance with the table –

46  Paragraph 9A (transactions between companies within same group) amended

In paragraph 9A(2), in the definition "group", after "1 or more of its subsidiaries" there is inserted "that are each controlled by the holding company".

PART 8

TAXATION (ENVELOPED PROPERTY TRANSACTIONS) (JERSEY) LAW 2022 AMENDED

47  Taxation (Enveloped Property Transactions) (Jersey) Law 2022 amended

This Part amends the Taxation (Enveloped Property Transactions) (Jersey) Law 2022.

48  Article 7 (calculation of charge to tax) amended

After Article 7(11) there is inserted –

(12)  Despite paragraph (1), in 2026 "Y" is –

1. in the case of enveloped property used for domestic purposes to which the higher rate applies, the amount found in accordance with column 2 of the table in Schedule 4;
2. in the case of enveloped property used for domestic purposes held under a contract lease where the market value exceeds £500,000 and to which the higher rate applies, £18,500 in respect of the first £500,000, plus £3.75 for each £100 or part of £100 in excess of that.

49  Schedule 4 (calculation of variable element of tax in 2026 where higher rate

applies) inserted

After Schedule 3 there is inserted –

SCHEDULE 4

(Article 7(12))

CALCULATION OF VARIABLE ELEMENT OF TAX IN 2026 WHERE HIGHER RATE APPLIES

Enveloped property used for domestic purposes

PART 9

MULTINATIONAL CORPORATE INCOME TAX (JERSEY) LAW 2025 AMENDED

50  Multinational Corporate Income Tax (Jersey) Law 2025 amended

This Part amends the Multinational Corporate Income Tax (Jersey) Law 2025. 51  Article 1 (interpretation) amended

In Article 1(1) –

1. for the definition "OECD commentary" there is substituted –

"OECD commentary" means the consolidated commentary published on 9 May 2025 by the OECD as "Tax Challenges Arising from the Digitalisation of the Economy – Consolidated Commentary to the Global Anti-Base Erosion Model Rules (2025)";

2. the definition "OECD June guidance" is deleted.

52  Article 7 (Jersey constituent entity) amended

For Article 7(2) there is substituted –

(2)  In  this  Article,  "securitisation  entity"  has  the  meaning  given  by paragraphs 148.2  and  148.3  of  Chapter  10  (definitions)  of  the  OECD commentary.

PART 10

CONSEQUENTIAL AMENDMENTS RELATING TO E-LIQUIDS

53  Excise Duty (Relief and Drawback) (Jersey) Order 2000 amended

1. This Article amends the Excise Duty (Relief and Drawback) (Jersey) Order 2000.
2. In Article 1 (interpretation), after the definition "cider" there is inserted –

"e-liquid" has the same meaning as in the  Customs and Excise (Jersey) Law 1999;

3. In Article 3(1) (personal relief), after sub-paragraph (c) there is inserted – (d)  50 millilitres of e-liquid.
4. After Article 4 (relief on alcohol), there is inserted –

4A Relief on e-liquid

Relief from excise duty on e-liquid is allowed on e-liquid produced by a person for their own domestic consumption not exceeding a total quantity of 2 litres a year.

5. Article 8A is deleted.

PART 11

FINAL PROVISIONS

54 Citation and commencement

1. This Law may be cited as the Finance (2026 Budget) (Jersey) Law 202-.
2. The following Articles come into force on a day to be specified by the Minister for Treasury and Resources by Order –

1. Article 25;
2. Article 52.

3. The rest of this Law comes into force on 1 January 2026.