Earlier this month, Jersey’s parliament voted to reintroduce a cap on the amount of probate duty which can be applied to an estate in the event of a person’s death – a move which has been welcomed by many.
Similar to England and Wales’ Inheritance Tax laws, probate duty in Jersey falls due when a person dies, and must be paid out of their estate when a grant of probate or letters of administration are applied for by the executor.
Normally, this duty is calculated at around £80 per £10,000 value on an asset other than land and until 2005, a cap was set at £13,360,000 value, meaning that the most that would ever be paid on an estate would be £100,000. This cap was then removed at that time.
Many high net worth individuals of course found the cap to be financially attractive, and so they chose to be domiciled on the island, only to be disadvantaged once more, once the cap was removed.
Its reintroduction therefore, on the same basis as before, is sure to attract these individuals once more to the island.