JERSEY Trends and Developments Contributed by: Lauren Glynn and Victoria Cure, Carey Olsen
Themes Emerging from Child Relocation Case Law in Jersey Jersey is a self-governing Crown Dependency, with its own legal system, laws and courts. Jersey is also an offshore International Finance Centre with a strong professional services industry. The professional ser - vices industry employs around 14,000 professionals within the sector, with a significant number of these professionals being attracted from overseas. Jersey’s thriving finance industry and its island location con - tribute to its high cost of living. Jersey is also a popular holiday destination and has a prosperous hospitality industry. The hospitality sec - tor is staffed by a significant number of people from overseas, who often come to Jersey with the intention of working the summer season, but end up remain - ing on the island long term. Whilst many Europeans work in these roles, following Brexit, there are also a significant number of individuals from further afield. Work in the hospitality sector is not generally highly paid – many employers will pay, or only slightly above, the minimum wage of GBP13 per hour. It is expensive to live and work in Jersey; property prices and day-to-day living expenses are high. This has been exacerbated by relatively high levels of infla - tion in recent years, with Jersey RPI reaching 12.7% in March 2023. Jersey is well-known as a low tax offshore jurisdiction. It welcomes applications from high net worth individu - als to come to Jersey as part of the High Value Resi - dency (HVR) programme. To be eligible to apply for the scheme, an individual must have: • the ability to generate an annual tax contribution of a minimum of GBP250,000; • sustainable worldwide income of more than GBP1.25 million per annum; and • personal wealth of more than GBP10 million in assets (not including their main residence). Successful applicants benefit from an income tax rate of 20% (the standard rate of Jersey income tax) on the first GBP1.25 million of worldwide income and 1% on income over this threshold. It is easy to see that this is
a very attractive proposition for many UHNW individu - als and their families. The commentary above demonstrates that Jersey is an island with significant immigration. Where families move to Jersey and then suffer relationship break - down, this can cause difficulties, and we commonly provide advice to people in circumstances in which parents have separated and one of them would like to return “home” with the children. Residential and employment statuses Jersey has four residential and employment statuses – Entitled, Licensed, Entitled for Work, and Registered. An individual’s residential and employment status determines their eligibility to buy and rent property on the island, as well as the type of work they are able to do. Registered persons and those Entitled to Work can only lease Registered property as a main place of resi - dence. Registered property is often more expensive and of a lower standard than what is called “qualified” property. Once a Registered person has been on the island for five years, they will become Entitled to Work and, by virtue of this change in status, entitled to receive a number of state benefits. However, residential status does not change until a person has lived in Jersey for ten years. Those who are Licensed can buy, sell or lease any residential property, not including first time buyer restricted or social rented housing, in their own name, for as long as they keep their Licensed status. Should a Licensed individual lose their job and therefore lose their Licensed status, any property they own will need to be sold. Divorce or separation can impact an individual’s resi - dential and employment status where their status was obtained by reference to their relationship. For example, if a husband makes a successful application under the HVR scheme, he will become Entitled with conditions, whereas their wife will become Entitled to Work only, by reference to her husband’s residential
89 CHAMBERS.COM
Powered by FlippingBook