September 22, 2025
The Government of Jersey has released its latest Budget proposals, setting out a mix of reliefs and revenue-raising measures that will affect households, employers and investors from 2026 onwards. Below we highlight the most important updates.
Exemption thresholds: The low-income exemption threshold will rise by 2.6% to £21,250in 2026. This delivers around £9m in tax relief, benefiting 90% of Islanders assessed at the marginal rate.
Child allowances: These will also increase modestly, with the standard child allowance rising to £3,950 and enhanced childcare reliefs increasing to£20,950.
Independent taxation: From 1 January 2026, all Islanders will be independently taxed.Married couples currently assessed jointly may claim a compensatory allowance if they would otherwise be disadvantaged. A joint filing option will also be available.
Context: Jersey’s tax allowances continue to rise, in contrast with the UK, where the personal allowance has been frozen at £12,570 since 2021.
Tobacco: Duty will rise by 7.6%, adding 80p to a pack of 20 cigarettes. Cigar duty will rise by 10.6%, narrowing the gap with cigarettes.
Alcohol: Duties will rise with inflation (RPI), but the long-awaited “tap relief” will take effect, cutting duty on draught beer, cider, wine and cocktails sold in pubs, restaurants and hotels by 10–15%. Small breweries will benefit from even lower rates.
Road fuel: After three years of freezes, duty will again track RPI. However, duty on Hydro treated Vegetable Oil (HVO) will remain frozen to encourage uptake of low-emission fuels.
Vaping: A new excise duty of 20p per ml will be introduced in 2026, designed to deter uptake among young non-smokers while keeping vaping cheaper than cigarettes.
To support Jersey’s Carbon Neutral Roadmap, VED will rise by:
5%for the lowest-emission bands,
10%for mid-range vehicles,
Up to 25% for the highest-emission bands.
Revenues(around £520k) will be channelled into the Climate Emergency Fund.
The stamp duty surcharge on second homes and investment properties will be cut from3% to 2% for one year, reflecting weaker housing market conditions and an 8.2%fall in prices during 2024. The position will be reviewed in future Budgets.
The civil penalty regime for incorrect returns will be extended to GST, bringing it in line with income tax compliance rules.
Households will benefit from higher exemption thresholds and child allowances, softening the impact of rising living costs.
Employers in hospitality and brewing will welcome tap relief, while those in transport and logistics should prepare for higher VED and fuel duty.
Investors and property buyers will see temporary relief on stamp duty for non-main residences.
All taxpayers should expect greater scrutiny on GST reporting.
At BCR Pro, we help individuals and businesses understand the impact of these Budget changes, optimise their tax position, and stay fully compliant. If you would like tailored advice on how these proposals affect you, please get in touch.
The Government of Jersey has released its latest Budget proposals, setting out a mix of reliefs and revenue-raising measures that will affect households, employers and investors from 2026 onwards. Below we highlight the most important updates.
Exemption thresholds: The low-income exemption threshold will rise by 2.6% to £21,250in 2026. This delivers around £9m in tax relief, benefiting 90% of Islanders assessed at the marginal rate.
Child allowances: These will also increase modestly, with the standard child allowance rising to £3,950 and enhanced childcare reliefs increasing to£20,950.
Independent taxation: From 1 January 2026, all Islanders will be independently taxed.Married couples currently assessed jointly may claim a compensatory allowance if they would otherwise be disadvantaged. A joint filing option will also be available.
Context: Jersey’s tax allowances continue to rise, in contrast with the UK, where the personal allowance has been frozen at £12,570 since 2021.
Tobacco: Duty will rise by 7.6%, adding 80p to a pack of 20 cigarettes. Cigar duty will rise by 10.6%, narrowing the gap with cigarettes.
Alcohol: Duties will rise with inflation (RPI), but the long-awaited “tap relief” will take effect, cutting duty on draught beer, cider, wine and cocktails sold in pubs, restaurants and hotels by 10–15%. Small breweries will benefit from even lower rates.
Road fuel: After three years of freezes, duty will again track RPI. However, duty on Hydro treated Vegetable Oil (HVO) will remain frozen to encourage uptake of low-emission fuels.
Vaping: A new excise duty of 20p per ml will be introduced in 2026, designed to deter uptake among young non-smokers while keeping vaping cheaper than cigarettes.
To support Jersey’s Carbon Neutral Roadmap, VED will rise by:
5%for the lowest-emission bands,
10%for mid-range vehicles,
Up to 25% for the highest-emission bands.
Revenues(around £520k) will be channelled into the Climate Emergency Fund.
The stamp duty surcharge on second homes and investment properties will be cut from3% to 2% for one year, reflecting weaker housing market conditions and an 8.2%fall in prices during 2024. The position will be reviewed in future Budgets.
The civil penalty regime for incorrect returns will be extended to GST, bringing it in line with income tax compliance rules.
Households will benefit from higher exemption thresholds and child allowances, softening the impact of rising living costs.
Employers in hospitality and brewing will welcome tap relief, while those in transport and logistics should prepare for higher VED and fuel duty.
Investors and property buyers will see temporary relief on stamp duty for non-main residences.
All taxpayers should expect greater scrutiny on GST reporting.
At BCR Pro, we help individuals and businesses understand the impact of these Budget changes, optimise their tax position, and stay fully compliant. If you would like tailored advice on how these proposals affect you, please get in touch.
The Government of Jersey has released its latest Budget proposals, setting out a mix of reliefs and revenue-raising measures that will affect households, employers and investors from 2026 onwards. Below we highlight the most important updates.
Exemption thresholds: The low-income exemption threshold will rise by 2.6% to £21,250in 2026. This delivers around £9m in tax relief, benefiting 90% of Islanders assessed at the marginal rate.
Child allowances: These will also increase modestly, with the standard child allowance rising to £3,950 and enhanced childcare reliefs increasing to£20,950.
Independent taxation: From 1 January 2026, all Islanders will be independently taxed.Married couples currently assessed jointly may claim a compensatory allowance if they would otherwise be disadvantaged. A joint filing option will also be available.
Context: Jersey’s tax allowances continue to rise, in contrast with the UK, where the personal allowance has been frozen at £12,570 since 2021.
Tobacco: Duty will rise by 7.6%, adding 80p to a pack of 20 cigarettes. Cigar duty will rise by 10.6%, narrowing the gap with cigarettes.
Alcohol: Duties will rise with inflation (RPI), but the long-awaited “tap relief” will take effect, cutting duty on draught beer, cider, wine and cocktails sold in pubs, restaurants and hotels by 10–15%. Small breweries will benefit from even lower rates.
Road fuel: After three years of freezes, duty will again track RPI. However, duty on Hydro treated Vegetable Oil (HVO) will remain frozen to encourage uptake of low-emission fuels.
Vaping: A new excise duty of 20p per ml will be introduced in 2026, designed to deter uptake among young non-smokers while keeping vaping cheaper than cigarettes.
To support Jersey’s Carbon Neutral Roadmap, VED will rise by:
5%for the lowest-emission bands,
10%for mid-range vehicles,
Up to 25% for the highest-emission bands.
Revenues(around £520k) will be channelled into the Climate Emergency Fund.
The stamp duty surcharge on second homes and investment properties will be cut from3% to 2% for one year, reflecting weaker housing market conditions and an 8.2%fall in prices during 2024. The position will be reviewed in future Budgets.
The civil penalty regime for incorrect returns will be extended to GST, bringing it in line with income tax compliance rules.
Households will benefit from higher exemption thresholds and child allowances, softening the impact of rising living costs.
Employers in hospitality and brewing will welcome tap relief, while those in transport and logistics should prepare for higher VED and fuel duty.
Investors and property buyers will see temporary relief on stamp duty for non-main residences.
All taxpayers should expect greater scrutiny on GST reporting.
At BCR Pro, we help individuals and businesses understand the impact of these Budget changes, optimise their tax position, and stay fully compliant. If you would like tailored advice on how these proposals affect you, please get in touch.
The Government of Jersey has released its latest Budget proposals, setting out a mix of reliefs and revenue-raising measures that will affect households, employers and investors from 2026 onwards. Below we highlight the most important updates.
Exemption thresholds: The low-income exemption threshold will rise by 2.6% to £21,250in 2026. This delivers around £9m in tax relief, benefiting 90% of Islanders assessed at the marginal rate.
Child allowances: These will also increase modestly, with the standard child allowance rising to £3,950 and enhanced childcare reliefs increasing to£20,950.
Independent taxation: From 1 January 2026, all Islanders will be independently taxed.Married couples currently assessed jointly may claim a compensatory allowance if they would otherwise be disadvantaged. A joint filing option will also be available.
Context: Jersey’s tax allowances continue to rise, in contrast with the UK, where the personal allowance has been frozen at £12,570 since 2021.
Tobacco: Duty will rise by 7.6%, adding 80p to a pack of 20 cigarettes. Cigar duty will rise by 10.6%, narrowing the gap with cigarettes.
Alcohol: Duties will rise with inflation (RPI), but the long-awaited “tap relief” will take effect, cutting duty on draught beer, cider, wine and cocktails sold in pubs, restaurants and hotels by 10–15%. Small breweries will benefit from even lower rates.
Road fuel: After three years of freezes, duty will again track RPI. However, duty on Hydro treated Vegetable Oil (HVO) will remain frozen to encourage uptake of low-emission fuels.
Vaping: A new excise duty of 20p per ml will be introduced in 2026, designed to deter uptake among young non-smokers while keeping vaping cheaper than cigarettes.
To support Jersey’s Carbon Neutral Roadmap, VED will rise by:
5%for the lowest-emission bands,
10%for mid-range vehicles,
Up to 25% for the highest-emission bands.
Revenues(around £520k) will be channelled into the Climate Emergency Fund.
The stamp duty surcharge on second homes and investment properties will be cut from3% to 2% for one year, reflecting weaker housing market conditions and an 8.2%fall in prices during 2024. The position will be reviewed in future Budgets.
The civil penalty regime for incorrect returns will be extended to GST, bringing it in line with income tax compliance rules.
Households will benefit from higher exemption thresholds and child allowances, softening the impact of rising living costs.
Employers in hospitality and brewing will welcome tap relief, while those in transport and logistics should prepare for higher VED and fuel duty.
Investors and property buyers will see temporary relief on stamp duty for non-main residences.
All taxpayers should expect greater scrutiny on GST reporting.
At BCR Pro, we help individuals and businesses understand the impact of these Budget changes, optimise their tax position, and stay fully compliant. If you would like tailored advice on how these proposals affect you, please get in touch.