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The Government has said that no wealthy immigrant who arrived before 2018 will be affected by its promised changes to rules for 'high-net-worth residents'.
It has pledged to reduce the number of rich people who want to move to Jersey under an article in the Island’s Housing and Work Law which allows them to buy a property straight away and have a special tax arrangement.
The fast-tracked path for the super-rich has long been a bone of contention, with detractors saying it is unfair and doesn’t benefit other islanders, while supporters say that ‘2(1)(e)s’ - named after the relevant article in the law that allowing for their entry - contribute significantly to the local economy, particularly behind the scenes.
This weekend, an article in the Sunday Times, titled ‘Jersey is a super-rich haven. So why are there so many food banks?’ explored these opposing views.
Journalist Robert Watts wrote: “Many residents feel they have not benefited from the influx of high-net-worth individuals. Rather than experiencing a trickle-down effect, they instead face higher house prices and a spiralling cost of living as the new arrivals muscle in on the island’s limited resources. For a millionaire’s playground there are still plenty of paupers.”
The story brought national attention to many important issues, including an application to build a mega-home in Bouley Bay, the high price of property, the loss of hotels and the island’s relationship with the finance industry.
It quoted, among others, Jersey Finance Chief Executive Joe Moynihan, Vinni Jones of the Grace Trust, Jersey Consumer Council Chairman Carl Walker, 23-year-old waitress Robyn Bracken, and Chief Minister Kristina Moore.
Pictured: The Sunday Times article used the redevelopment of the Water's Edge Hotel as an example of the tensions in Jersey over wealthy newcomers.
Asked about the coverage, as well he thoughts on the 2(1)(e)s regime, which last week estate agents and relocation specialists defended, Deputy Moore said: “Our strategic priorities commit to putting the needs of islanders first, and while we accept there will always be different levels of income, we are actively seeking to improve Islanders’ quality of life so we can be a community where everyone thrives.
“This weekend, I helped Grace Trust serve their Saturday lunch at St. Paul’s Church to more than 50 people who needed the charity’s support, and it was a chance for me to learn more about what Government can do to support Islanders with the challenges our community is facing.
“I know that people in Jersey care particularly about having access to sufficient affordable homes for themselves and their families, and are worried by the rising cost of living. Dealing with these key issues is at the core of our ambitions for this Government."
Pictured: Chief Minister Kristina Moore helping at the Grace Trust last weekend.
Turning to the high-value residency scheme operated by Locate Jersey, she reiterated that the 2(1)(e) regime is being reviewed.
"Our Government Plan increases the personal income tax charge to the maximum possible of £170,000 to reflect inflation, with all income exceeding £850,000 taxed at 1%," she said.
“We are reviewing the scheme to change criteria for new applicants. We recognise that there are 88 Jersey residents who are not part of the high value residency scheme, who each paid just over £220,000 in tax in 2020 – in other words, they pay the full Jersey tax rate of 20 per cent of their income.
“People want to move to Jersey because we have a fantastic social and natural environment, a wonderful safe community, and because of our location close to the UK and Europe. This will not change, and Jersey will remain an attractive jurisdiction.
“We will continue to value our high value residents and we want them to contribute appropriately to the Island. We are not going to change the regime for anyone who arrived before 2018, but we have committed to updating the 2(1)(e) policy so that it can further enhance the economic and social benefits to the Island from a fewer number of applicants in future.
“Our approach is to be more discerning. We expect to raise greater revenue from a smaller number of high value residents, and in fact we have recently turned a number of applicants down.”
"We should be letting in more high-net-worths to Jersey - not fewer"
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INSIGHT: Attracting the wealthy to Jersey...a history - Express takes an in-depth look at the origins of the scheme and how it has progressed over the years...
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