New pensions law in Jersey24 Sep 2014
The draft Income Tax (Amendment No. 44) (Jersey) Law 201- (the "New Law") was passed by the States Assembly (Jersey's government) today. The introduction of this legislation is designed to simplify and modernise the taxation of pensions and to increase the flexibility of the pensions regime in Jersey.
The changes to the taxation of pensions introduced by the New Law should come into effect on 1 January 2015 and will create new opportunities for employers and employees in Jersey in terms of their financial planning. Key among these are:
- The introduction of "flexible retirement";
- Availability of partial fund transfers;
- Greater flexibility on how to pay out the 30% tax-free lump sum available from approved Jersey schemes;
- Non-residents will be allowed to contribute into a retirement trust scheme (currently known as a retirement annuity trust scheme or a RAT); and
A much wider range of international pension fund transfers both to and from Jersey.
For further information please contact Nancy Chien, who is a member of the Jersey Finance International Pensions Working Group in Jersey, which made submissions in relation to the consultation on the New Law. Nancy is also a committee member of the Jersey Pensions Association.