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Jersey was part of the Duchy of Normandy, whose dukes became kings of England from 1066. After Normandy was lost by the kings of England in the 13th century, and the ducal title surrendered to France, Jersey remained loyal to the English Crown, though it never became part of the Kingdom of England.
May 29, 2020 · We have prepared a note setting out some of the key differences that exist in relation to companies incorporated in Jersey compared to those incorporated in the UK under the Companies Act 2006.
- Current Regime
- General Tax Residency Guidelines
- Background
- The FTT Case
- Subsequent Appeals
- Lessons to Be Learned
- What Should You do?
The principal Jersey tax statute is the Income Tax (Jersey) Law 1961 (the Income Tax Law) which determines the rate of Jersey income tax payable by Jersey companies. A company will be Jersey tax resident for the purposes of the Income Tax Law if it is incorporated in Jersey or, if incorporated elsewhere, its business is managed and controlled in Je...
Wood v Holden [2006] EWCA Civ 26
The English law case of Wood v Holden confirmed that all board meetings should be held and all decisions and resolutions should be made in Jersey to ensure that a Jersey entity's tax residency remains in Jersey as a matter of English tax law.
Laerstate BV v HMRC [2009] UKFTT 209
In the English case of Laerstate, the First Tier Tribunal (FTT) held that a company's residency cannot be established merely on the basis of the location of board meetings. The FTT found that a company should be resident in the place that it had been doing all its real business, including contract negotiations and obtaining its advice. In Laerstate the FTT found that this was within the UK, which made the company tax resident in the UK. The following guidelines were raised: 1. When determinin...
Development Securities (No.9) Ltd (DSL) set up three Jersey subsidiaries to participate in a tax planning arrangement on the recommendation of a major accounting firm. The Jersey companies were to acquire certain assets at more than their market value via the use of call options which could be exercised once certain conditions were met. This struct...
HMRC rejected the scheme, arguing that the Jersey subsidiaries had always been tax resident in the UK since their central management and control took place there, rather than in Jersey, despite their directors being Jersey-based. DSL appealed to the FTT, which took HMRC's side, agreeing that the Jersey subsidiaries were centrally managed and contro...
DSL appealed the FTT's decision and the Upper-Tier Tax Tribunal (the UT) accepted the appeal in 2019. The UT concluded that the Jersey directors had acted properly in taking into account the interests of its sole shareholder when deciding to enter into the disputed transactions. The SPVs had no employees and the transactions did not prejudice credi...
The Development Securities case again flags the importance of normal safeguards Jersey service providers and advisers are used to ensuring are in place, including a proper composition of a non-UK company’s board of directors, protecting the genuine autonomy of that board, and ensuring that all decisions in relation to the business strategy and acti...
Check all precedent documents, policies and protocols to ensure they emphasise the need to avoid language relating to "instructions" or "directions" and that there are drafting/correspondence guide...Ensure all statutory and other correspondence is centrally held and easily accessible if HMRC request itTry and avoid having directors attend from the UK, or particularly if they represent a shareholderEnsure that board meeting papers properly consider and document the commercial rationale for transactions which is intended to deliver a particular outcome for English tax purposesApr 17, 2023 · The Companies (Jersey) Law 1991 is recognised for its clarity, flexibility and the fact that it is constantly being amended to reflect the changing world in which businesses operate. Jersey companies are attractive for many reasons – some of the key factors being:
Feb 1, 2023 · This overview is intended to provide broad information as to the types of companies available in the Island of Jersey, the method of formation and taxation of a Jersey company and the ongoing requirements under the principal provisions of the Companies (Jersey) Law 1991, as amended (Law).
Jun 27, 2024 · Our Corporate experts provide a summary of the main legal requirements and general principles applicable to the establishment of a private company in Jersey.
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Aug 19, 2024 · Jersey has its own laws, judiciary and executives. When England was conquered by the Normans in 1066, the Channel Islands became subject to whoever was on the English throne since they had already been annexed by Normandy in the tenth and eleventh century.
