Provided that the settlor and any beneficiaries are resident outside the relevant Island, local taxation is payable only in respect of income arising locally, excluding bank deposit interest and dividends from local companies that have elected to be treated as exempt. In practice, local taxation is rarely, if ever, payable for these types of trust. There are no stamp or other duties on the creation of a trust.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Jonathan G. Hooley on Tel (indirect line): + 44 (0) 1481 721000, Tel (direct line): +44 (0) 1481 719544, Fax: +44 (0) 1481 722373.