Budget Phases Out Tax Allowances

20th October 2015

Drinkers, smokers and drivers will be paying more in duty under plans in Jersey’s 2016 Budget.

Income tax allowances for children, being a lone parent and paying interest on a mortgage are being gradually phased out.

Mortgage Interest tax relief, will be phased out by 2027 under Ministerial plans.

Around 6,500 standard 20% taxpayers will see their standard child allowance and the additional personal allowance for single parents withdrawn.

They will be kept for marginal rate taxpayers, and Ministers willl bring forward new plans to help with the cost of childcare.

Other measures that will be debated in the States of December 15th include duty rises of a penny on a pint, 35 p on a packet of cigarettes and a penny on a litre of fuel.

Senator Alan Maclean says his budget begins addressing inconsistencies in the system.

He says it phases out allowances that can no longer be justified, and that challenge health the of the island’s finances.

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