20% means 20%

WHAT TAX RATE does Jersey apply to the income of its residents? Ever since the 1940s the answer has been '20%' and most UK advisers explaining the advantages of Jersey residence to their clients would have described this as a 'flat rate'. But at the moment it is not — there are a number of allowances and reliefs that can be claimed including relief on mortgage interest which has not been a feature of the UK system for many years now. In addition exemption thresholds cover over 35 000 of Jersey's 50 000 taxpayers. These exempt from tax quite significant levels of income (calculated after personal allowances and deductions). For 2004 a single person had an exemption limit of £11 020 and a married couple £17 680 with further additions for children and wife's earned income. Income in excess of this is...