On 8 October 2013, the tax policy unit of the States of Jersey issued a consultation paper entitled 'Tax rules applying to pensions and pension schemes' ("Consultation Paper"). The Consultation Paper seeks to modernise and simplify the current arcane rules concerning pensions provision under the Income Tax (Jersey) Law 1961, as amended, which are said to be "lengthy, complex and difficult to understand".
This briefing note will outline the key proposals in the Consultation Paper. The Consultation Paper is likely to have a significant impact on all employers and trustees who operate existing Jersey pension arrangements, as well as members with current pension savings.
The consultation is open until 10 January 2014, however it is proposed that the changes will be introduced in two different stages. The first set of changes will be lodged with the States by 17 March 2014 and the proposed legislative amendments will be debated on 29 April 2014, with the amended legislation introduced shortly thereafter. The second set of changes will be lodged with the States in the summer of 2014.
If you wish to understand more about any aspect of the Consultation Paper, and how your scheme would be affected by the proposed changes or would like our assistance with putting together a response to the Consultation Paper, please do not hesitate to contact Nancy Chien or James Campbell.