Further Pension Changes In Jersey

New pension changes

Although the Jersey tax approval regime was amended substantially with effect from I January 2015, the Finance (2018 Budget) ( Jersey) Law (the " Budget Law") has introduced four further changes, which came into effect on 1 January 2018. In summary, the four changes are:

• the maximum limit for the commutation of trivial pensions has increased from £30,000 to £35,000;
• the small commutation provisions have been amended and extended;
• there is now specific provision for bulk transfers as between approved Jersey occupational pensions schemes; and
• an anti avoidance measure has been introduced in relation to certain overseas transfers.

The changes are effected by amending Part 19 of the Income Tax ( Jersey) Law 1961, as amended (the "Income Tax Law"), in the manner set out in the Budget Law. None of the changes are mandatory (but please see our comments below concerning small fund commutations). Instead, it is for each scheme manager to