www.imperiumtrust.com e info@imperiumtrust.com t +44 (0)1481 728380

ISSUE 1

Imperium is one year old and we are marking this milestone with a short newslett er. It’s diffi cult to believe that we have been operati ng for a year already and it has certainly been an eventf ul and busy twelve months. Increasing numbers of clients (not complaining about that!) and more

staff – we are very much looking forward to an exciti ng second year!

We aim to produce this newslett er every quarter to bring you up to date with any company developments, our service off erings and changes in Guernsey’s legislati on, regulati on and infrastructure. Please contact us for further details on any of the topics included in this issue.

David Gilmour , Managing Director

Guernsey’s fi rm Foundati ons

Guernsey as a jurisdicti on has regularly demonstrated its fl exible and pragmati c approach to creati ng a solid commercial environment for companies to transact business in the global fi nancial marketplace. The latest tool in the Guernsey wealth-planning armoury is the Guernsey Foundati ons Law, which was approved by Guernsey’s parliament in July and is expected to come into force late this year or early in 2013.

Whilst Foundati ons have not always enjoyed the most favourable reputati on - having att racted negati ve publicity for secrecy and associati on with tax evasion - Guernsey’s Foundati on is set within quite a diff erent legislati ve framework from that of its counterparts in Panama or Liechtenstein. The legislati on has been draft ed in such a way that it refl ects many provisions of the existi ng Trusts Law whilst sti ll including some of the best characteristi cs of existi ng Foundati on vehicles. These enti ti es will appeal to individuals from civil law jurisdicti ons who might be less familiar with the common law trust.

The new law also includes provision for migrati on of existi ng Foundati ons and there has already been considerable interest from individuals with vehicles based elsewhere to re-locate them to Guernsey – a refl ecti on of the Island’s enviable reputati on as a secure well-regulated jurisdicti on. These new vehicles are ideal for wealth management, charitable giving and succession planning.

The power of the brand

Another fi rst for Guernsey – the long awaited Image Rights Law was approved by the Island’s government and the registry offi cially opened on 3 December 2012.

Image is serious business. Celebriti es, sports personaliti es and musicians oft en enjoy considerable income from endorsements and sponsorships. Roger Federer is reported to have earned $7.7m from his “day job” in the twelve months to June this year but having supplemented his income by a staggering additi onal $45m in endorsement and sponsorship deals! The need for image protecti on is evident.

Guernsey’s ground-breaking legislati on is the fi rst of its kind in the world and will enable celebriti es to register not only images and names but characteristi cs, mannerisms, catch phrases and other unique identi fi ers that form part of their own personal “brand”, going well beyond the scope of the existi ng IP legislati on.

Image rights will generally be held in a corporate vehicle within a trust structure. Key benefi ts include:

• Succession planning - celebriti es will be able to incorporate their image rights into their succession planning with the rights forming part of their estate assets;

• Tax planning - there are some benefi ts to be derived from a tax planning point of view although these will vary depending on an individual’s place of residence;

• Financial leverage – banking insti tuti ons may be more willing to loan against image rights held within a secure corporate structure.

We live in an era where communicati on is immediate and through social and other viral media, people can become sensati ons almost overnight. The new Guernsey legislati on will enable young sporti ng talent and budding celebriti es to register their image rights even before their full potenti al has been realised, ensuring the commercial value of individual brands is protected throughout their lifeti me and beyond.

www.imperiumtrust.com e info@imperiumtrust.com t +44 (0)1481 728380

De-enveloping and property purchase

The UK Government has announced plans to introduce new rates of SDLT for high-value residential property held in offshore corporate structures or “envelopes”. It is clear that many individuals with residential UK properties held in an offshore vehicle will want to look at alternative solutions in order to avoid or minimise the new charges.

Whilst there is no one generic solution for clients affected by these proposed changes, there are options available for individuals seeking to de-envelope properties held in offshore entities. Our solutions differ depending on individual circumstances, but given the timelines for the planned changes - April 2013 - it is essential that for those who wish to de-envelope their property, action be taken sooner rather than later.

The details of the changes have been well documented and have inevitably led to a level of stagnation in the property market. We can assist those individuals wishing to purchase property in the £2m plus bracket via an offshore entity. With careful structuring and planning our residential property purchase structure offers tangible benefits in terms of CGT and IHT mitigation.

Qualifying non-UK Pension Schemes (QNUPS)

Guernsey is a recognised centre of excellence for the provision and administration of pension schemes. Available to both Guernsey residents and non-residents, the schemes are ideal for individuals seeking to enhance their pension beyond the UK annual allowance and the lifetime allowance.

Benefits of the schemes include:

• Capital gains and income can be rolled up tax free in Guernsey maximising the potential income on retirement;

• No requirement to purchase an annuity on retirement and pension income can be deferred until age 75;

• With no requirement to purchase an annuity, pension proceeds can be distributed to family on death;

• Ability to take a lump sum of up to 30% of the value of the assets;

• Potential to take a loan (up to 25% on a secured and commercial basis);

• UK IHT mitigation opportunities on assets held within the scheme;

• No UK reporting requirements.

QNUPS are potentially highly tax efficient schemes suitable both for expatriates and high net worth UK resident or domiciled individuals.

New faces

We are delighted to announce two recent appointments to the Imperium Board. Rhona Humphreys and Bryan O’Meara have joined the company, bringing valuable additional experience and strength to the private client and financial operations teams respectively.

Rhona has taken up the dual role of Chief Operating Officer and Client Relationship Director. Her offshore experience spans a wide spectrum of company and trust administration from pension planning (including QNUPS management) and property investment to image rights and limited partnerships. Bryan joins Imperium as Finance Director with over 30 years’ experience within the financial services sector, including roles with large multi-nationals as well as smaller independent organisations. Bryan has in-depth expertise in company finance and operations.

They are settling into our small team very well – please contact them about any of our products or services.

Left to right: Bryan O’Meara, Peter Snowden, David Gilmour, Rhona Humphreys