Jersey urged to assess benefits of wealthy residents scheme

The government is being urged to conduct a more rigorous assessment of the benefits of Jersey’s High Value Residency Scheme, which aims to attract wealthy individuals to the island.

The programme grants residency to high-net-worth individuals who are economically active and highly skilled. Those accepted pay 20% tax on the first £1.25 million of their worldwide income and 1% on income above that threshold.

Reform Jersey co-leader Deputy Monty Tadier has questioned whether participants could contribute more to the island’s economy and called for the government to publish data demonstrating the scheme’s overall benefits.

Earlier this month, representatives from the business, finance and legal sectors met to discuss the role high-value residents play in Jersey’s economy. The meeting heard that around 260 families currently living on the island had relocated through the scheme.

Deputy Tadier acknowledged that the programme could deliver a net benefit, but said its impact needed to be assessed more objectively.

He said the government should examine what participants contribute to the island, whether the scheme produces an overall economic benefit, and whether it also creates negative consequences.

He added that these were the kind of difficult questions the government tended to avoid.

The Reform Jersey co-leader said his party would not necessarily seek to abolish the scheme, but wanted to ensure it remained sustainable.

He also suggested that the wealthiest participants could be asked to contribute more, particularly as Jersey looks for new sources of government revenue.

In February, Chief Minister Lyndon Farnham said individuals granted residency through the scheme were making a positive contribution to the island and that there was no evidence they were having a negative impact.