Changes to Jersey’s Probate Duty (Death Duty)
On 5th December 2012, Jersey politicians voted, where the deceased was not domiciled in Jersey, to reintroduce a ceiling to the amount of stamp duty payable on application for grant of probate or letters of administration. The ceiling which had applied to a deceased person’s movable property held in Jersey had been removed controversially in 2005.
The administration of a deceased person’s movable property located in Jersey attracts a charge to stamp duty which is payable when an application is made for either a grant of probate or letters of administration. Where the deceased person is not domiciled in Jersey the amount of stamp duty payable is calculated by reference to the value of the net movable estate situate in Jersey at the date of death. The amount of stamp duty payable is calculated on a sliding scale for estates worth less than £100,000 with the highest rate payable of 0.75% becoming payable for estates worth over £100,000. Where the deceased person is not domiciled in Jersey a limit to the total amount of stamp duty payable on moveable estates situated in Jersey has now been re-established so that the maximum stamp duty payable is £100,000 which is reached for estates worth more than £13,360,000. Note this duty is not payable on immoveable property situated in Jersey such as houses.
Where the deceased person is domiciled in Jersey there is no ceiling to the amount of stamp duty payable which is calculated on the deceased person’s world wide moveable estate. Note this duty is not payable on immoveable property such as houses. Where estates are held in other jurisdictions local charges may also apply.
Happily, there are no other death duties payable in Jersey such as estate duty or inheritance tax. In fact with the absence of any form of gift tax in Jersey, estate planning can be undertaken during lifetime so as to reduce the probate duty payable.