Guide
Stamp Duty, LTT and EPT in Jersey
21 January 2025
Introduction
Stamp duty is payable by the buyer on a freehold and flying freehold purchase.
Land Transaction Tax ('LTT') is payable by the buyer on most residential share transfer transactions. Please see our specific guide on LTT.
Enveloped Property Tax ('EPT') was introduced by The Taxation (Enveloped Property Transactions) (Jersey) Law (effective 4 April 2022) and is payable by the buyer in most transactions involving Jersey freehold property which is owned by a company and which exceeds a minimum value threshold. There are three EPT rates, one for each of domestic properties, non-domestic properties, and leasehold properties, and it is calculated based on the market value of the property.
This briefing is intended to cover only stamp duty and LTT.
Purchases
Current rates for stamp duty and LTT are:
Residential
If the value exceeds £50,000 but does not exceed £300,000
£250 for the first £50,000 plus 1.5 % for each £100 (or part)
If the value exceeds £300,000 but does not exceed £500,000
£4,000 for the first £300,000 plus 2 % for each £100 (or part)
If the value exceeds £500,000 but does not exceed £700,000
£8,000 for the first £500,000 plus 3 % for each £100 (or part)
If the value exceeds £700,000 but does not exceed £1,00,000,000
£14,000 for the first £700,000 plus 3.5 % for each £100 (or part)
If the value exceeds £1,000,000 but does not exceed £1,500,000
£24,500 for the first £1,000,000 plus 4.5 % for each £100 (or part)
If the value exceeds £1,500,000 but does not exceed £2,000,000
£47,000 for the first £1,500,000 plus 5.5 % for each £100 (or part)
If the value exceeds £2,000,000 but does not exceed £3,000,000
£74,500 for the first £2,000,000 plus 7.5 % for each £100 (or part)
If the value exceeds £3,000,000 but does not exceed £6,000,000
£144,500 for the first £3,000,000 plus 10 % for each £100 (or part)
If the value exceeds £6,000,000
£429,500 for the first £6,000,000 plus 11 % for each £100 (or part)
There is a £90 registration fee for all freehold transactions.
The value of the property is assessed, rather than the price, so gifts and transactions at an undervalue will incur stamp duty based on for the open market value of the property. Concessions are available to first time buyers who fit the applicable criteria.
A different scale is used for commercial property:
Commercial
LTT is payable on a share transfer transaction only when the articles of association of the company grant a right of occupation of a dwelling unit; EPT will be payable in the majority of other instances where Jersey immovable property is held through a company.
Stamp duty is payable as follows
Up to £1,000,000 but under £1,500,000
£22,000 for the first £1,000,000 plus 3.5 % for any additional amount
Over £1,500,000 but under £2,000,000
£39,500 for the first £1,5000,000 plus 4 % for any additional amount
Over £2,000,000
£59,500 for the first £2,000,000 plus 5 % for any additional amount
There is a £90 registration fee in all cases.
Higher rate
If you are buying a property to use as anything other than your main residence you must pay the higher rate of an additional 3% implemented from 1 January 2003.
Mortgages
Stamp duty and LTT are also payable on any mortgage taken out to finance a purchase. The stamp duty or LTT rate is 0.5 % of the value of the loan plus a £90 registration fee.
Where a borrower is refinancing an existing loan over their sole place of residence, a nominal rate of £90 is payable, plus 0.5 % of any amount in excess of the original amount drawn under the loan.
This does not extend to refinancing of commercial property or investment property, where a discretionary concession has to be sought from the Registrar of Deeds.
Leases
Stamp duty is payable by the tenant on a contract lease, sub-lease or licence to occupy where the lease or licence is for more than 9 years as well as upon the transfer or extension of such agreements. Predetermined rent reviews fixed by the terms of the lease (or licence) must be factored in to calculating the stamp duty and therefore can be costly to the tenant. Further, premiums and reverse premiums also attract stamp duty.
Stamp duty is calculated by multiplying the rent or licence fee by the number of years of the term, subject to a maximum of 21 years. The applicable rate is currently 0.5 % of the first £100,000 and 0.75 % of the remainder of the quantum of these multiples.
The rent or licence fee used for this calculation must represent the true market rent, otherwise the deemed open market rent will be applied for the purposes of calculating the stamp duty due.
Contacts
A full list of contacts can be found here.
Contact
About Mourant
Mourant is a law firm-led, professional services business with over 60 years' experience in the financial services sector. We advise on the laws of the British Virgin Islands, the Cayman Islands, Guernsey, Jersey and Luxembourg and provide specialist entity management, governance, regulatory and consulting services.
