newsletter - imperium trustimperiumtrust.com/wp-content/uploads/2013/03/newsletter-2-draft.pdf · e...
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www.imperiumtrust.com e [email protected] t +44 (0)1481 728380
ISSUE 2
Some months have passed since our last Newslett er. So here is a quick update on what has been happening here in Guernsey and at Imperium.
Despite the somewhat challenging ti mes in which we are operati ng, Imperium is faring well. We are seeing regular new cases coming
onto our books some of which are re-locati ng from some of our competi ti ve jurisdicti ons. There certainly seems to be market demand for the type of niche specialist fi duciary services that the small but quality Imperium team can off er.
David Gilmour, Managing Director
Foundati ons – an update
Guernsey’s foundati on legislati on came into force on 8 January 2013 and the registrar of foundati ons accepted the registrati on of four foundati ons the following day. Now totalling six, the foundati ons established under the new Guernsey law have so far been for either philanthropic reasons or form part of a wealth management structure.
Despite initi ati ng discussions on introducing a foundati ons law at a very early stage, Guernsey was one of the last of the Crown Dependencies to do so. Legal draft smen and local authoriti es have ensured that the Guernsey foundati on is not merely a clone of foundati ons from other common-law jurisdicti ons, but that it is a bespoke enti ty which fulfi ls the specifi c requirements of the island’s client base.
Imperium has had quite a number of enquiries regarding Guernsey Foundati ons – mainly as a vehicle for asset holding. But their benefi ts go beyond that - wealth management, charitable giving, pension planning, estate planning – to name but a few.
The Guernsey foundati on provides clients with an alternati ve opti on should they be uncomfortable with the common-law concept of a trust; its structure off ers greater fl exibility when compared with foundati ons located in many of our competi ti ve jurisdicti ons. A useful additi on to Guernsey’s range of wealth planning instruments - the foundati on could potenti ally open doors into new geographic markets.
Qualifying non-UK Pension Schemes (QNUPS)Guernsey has long since proved itself as one of the leading jurisdicti ons for the provision and administrati on of pension schemes. QNUPS were introduced by HMRC legislati on in 2010 (with the eff ecti ve date of 6 April 2006).
The legislati on sets out the criteria that any overseas pension would need to meet in order to qualify as a non UK Pension Scheme. It also clarifi es and how these schemes will be treated for UK tax purposes both whilst the member is contributi ng and whilst he is benefi ti ng as well as aft er death. Benefi ts of a Guernsey QNUPS are numerous and of parti cular note is the fact that they are available to UK resident-domiciled individuals:
• Capital gains and income can be rolled up tax free in Guernsey maximising the potenti al income on reti rement;
• No requirement to purchase an annuity on reti rement and pension income can be deferred unti l 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;
• Potenti al to take a loan (up to 30% of the value of the assets on a secured and commercial basis);
• UK IHT miti gati on opportuniti es on assets held within the scheme;
• No UK reporti ng requirements.
Guernsey’s benign tax regime, its politi cal stability together with its reputati on as a quality jurisdicti on for the provision of fi nancial services makes it the ideal choice for administering pensions schemes for clients based all around the world.
Property de-envelopingThe new rates of SDLT for high value (over £2 million) residenti al property held in off shore corporate structures were introduced on 1 April 2013. In brief the new charges are as follows:
• Stamp Duty Land Tax for any purchases was increased to 15%;
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• Capital Gains Tax was introduced on any disposal by an off shore company;
• Introducti on of an annual charge (of approx. 0.7% of the property’s value) for properti es that remain in off shore structures.
For anyone who has merely maintained the status quo, the charges will need to be met for the fi rst year and in certain circumstances this may be the preferred opti on going forward. However there are opti ons available for de-enveloping properti es to minimise the charges in the future. We are working with a number of our clients to who wish to look at alternati ve structuring for their UK properti es.
General Anti -Abuse Rule (GAAR)The Finance Bill 2013 – due out in July - will see the introducti on of a GAAR. An further example of the UK government’s determinati on to clamp down on abusive tax schemes, the objecti ve of this rule according to HMRC is “to deter and counter abusive tax avoidance, while providing certainty, retaining a tax regime that is att racti ve to businesses, and minimising costs for taxpayers and HMRC”.
The Channel Islands take a zero tolerance stance on tax abuse and the islands’ respecti ve regulatory authoriti es have taken proacti ve steps in order to close down abusive schemes. Jersey and Guernsey should therefore welcome the GAAR as a means of clarifying the complex UK tax rules.
New team memberJackie Page has just joined the Imperium team as a senior trust administrator.
Having over 25 years’ experience in the Guernsey fi duciary sector, Jackie will take on the day-to-day administrati on of a portf olio of clients. With Imperium’s growing client base she will be a valuable additi on to the team.
Online presence gets a makeoverMarking our fi rst year of operati on, we have had a new website designed and developed as part of our on-going development programme.
The site showcases Imperium’s key areas of acti vity and the services off ered by our highly experienced team as well as informing clients and professional network of contacts of changes and developments to legislati on and regulati on within the Guernsey market.
The website is the company’s ‘shop window’. We wanted to refresh the look and feel of our online presence and we think that our new-look site is visually modern and contemporary whilst projecti ng the professionalism and knowledge of the Imperium team.
Take a look www.imperiumtrust.com