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Treasury: Struggling ex-pat pensioners are “last thing we want”

Treasury: Struggling ex-pat pensioners are “last thing we want”

Wednesday 11 July 2018

Treasury: Struggling ex-pat pensioners are “last thing we want”

Wednesday 11 July 2018


Ex-pat pensioners struggling to afford their retirement are the “last thing” the Treasury Minister said she wants, as she revealed she was considering a scheme to lighten their tax load.

Jersey pensioners are losing thousands of pounds of income every year because they are being charged the top 20% rate of tax on their pensions, despite not being entitled to use any of the island’s services.

The decision to remove all tax breaks for those living overseas came in former Treasury Minister Alan Maclean’s 2017 Budget as part of a bid to raise more revenue for the States each year. 

But, as originally revealed by Express, the measure, which was originally directed at the affluent, is actually causing “unintended hardship” for many former Jersey residents abroad. One couple reported paying double the tax abroad than they would in Jersey, while former Police Officer Martin Edwards, who now lives in Spain, lamented that the taxes he has had to pay could have contributed to a much-needed knee operation.

New Treasury Minister, Deputy Susie Pinel, was questioned in yesterday's States Assembly meeting over whether she would “consider reintroducing marginal relief for non-resident pensioners” by Deputy Steve Ahier.

Susie_Pinel.jpg

Pictured: Treasury Minister Susie Pinel said that she was "considering a scheme" to rectify the problems caused by the removal of tax breaks for overseas pensioners.

The Minister explained that the Treasury Department “has saved half a million pounds [annually] by removing this marginal relief”, but added that her department had originally anticipated that only “very few individuals would be adversely affected” by the move. She added that it was likely this was because their countries of residence didn’t have special measures in place to prevent them from being taxed twice. 

Nonetheless, she confirmed that she was “actively considering whether a scheme could be developed to help the small minority of people who are on a low income and are also suffering double taxation on their Jersey-sourced income.”

The Minister later added that she believed the total number of people affected stood around 25, but commented: “…We are addressing that small number because obviously the last thing we want is for people to be in a situation where people can’t afford to live in their retirement.”

Former BBC broadcaster Roger Bara, who has previously spoken out on the issue, commented on this latest news: "Firstly, I am pleased that this issue of our loss of Marginal Relief is at least being considered, and that the severe loss of life quality for expats on a limited income is being recognised. I do feel however that there are many more people affected than the Minister realises. Don’t forget also, all those that are considering retirement away from Jersey because of the sheer cost of living are also affected, as many of them are now completely unsure which way to turn.

"Secondly, the Minister is over-complicating the issue. Double taxation and tax agreements are a jurisdictional lottery as she well knows. All we are campaigning for is to have our Marginal Relief, cruelly taken away in 2016, returned, so we pay the same sort of tax as the good folk of Jersey who still reside there."

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