Individuals may need to take advice on the timing of their move to Jersey, particularly with regard to:
the date of departure from the territory where they were formerly resident to the end of the tax year in that territory, in order not to be assessed for subsequent periods unnecessarily; and
acquiring a new residence status in Jersey.
New residents should review their investments before moving to Jersey. Investments which may be tax exempt in the individual's home country, for example, TESSAs or PEPs held by individuals moving from the UK, will generally not be tax exempt in Jersey. Where appropriate such investments should be realised before the individual becomes resident in Jersey. New residents will also want to consider the incidence of other tax liabilities such as withholding taxes on income and taxes on capital on the investments that they continue to hold outside Jersey.
It may be important for UK tax purposes to provide evidence of the acquisition of a domicile of choice in Jersey. This will generally involve severing connections with the immigrant's former domiciliary territory, such as club memberships, ownership of real property, etc, and taking steps to indicate an intention permanently to reside in Jersey. By custom, this will include the making of a will in the Island, where the laws of succession are to some extent based on ancient Norman law.
Under the "deemed domicile" rules of UK inheritance tax, a person who abandons his UK domicile in favour of a domicile of choice elsewhere is deemed to remain domiciled in the UK for a period of three years after the actual change of domicile. However, certain UK government securities are exempt from these deemed domicile provisions, so that persons whose assets at death are composed entirely of these securities and who are domiciled in Jersey but deemed, for inheritance tax purposes, to be domiciled in the UK can still avoid all inheritance tax.
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Cyprus offers many key benefits to foreign investors and their dependent family members who are looking for a jurisdiction that offers a gateway to Europe, high quality standards of living and working infrastructure and services.
Investing in distressed assets is not a new phenomenon but current market conditions and the significant quantity of distressed assets remaining on bank and other balance sheets are undoubtedly giving rise to increased distressed trading opportunities globally.
At its most basic level a partnership requires no formalities or registration and is the simplest manner in which to carry on a business. Partnerships have been used for many centuries and were initially governed by common law rules that evolved to regulate both the dealings of the partnership with third parties, and the dealings of the partners with one another.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).