The advantages of relocating your family and business to Jersey
If you are looking to relocate to a safe, stable jurisdiction, Jersey should definitely be high on the list of choices for high net worth individuals and entrepreneurs. The Island provides a high-quality lifestyle, a great place to bring up a family and has a thriving business environment with a strong international reputation.
Jersey enjoys a warm continental feel due to its proximity to France. At the same time, Jersey retains a strong link with the UK due to historical ties and provides the feeling of a British home from home. The sunny climate lends itself to a fantastic outdoors lifestyle and Jersey’s coastline combines miles of natural scenery, beautiful cliff-path walks and well-renown beaches. Food connoisseurs are well-served as locals frequent the many high-class eateries on the island from al fresco dining to Michelin-starred restaurants through to the relaxed beach café culture. Jersey benefits from excellent transport and communication links to the UK and Europe, goods schools teaching the UK curriculum, low levels of crime and political stability.
The tax regime is favourable for individuals and businesses. There are no capital, wealth or inheritance taxes. The standard rate of income tax is 20%. However, there is a unique and beneficial tax regime for relocating high net worth individuals. Each year Jersey looks to welcome some High-Value Residents (HVRs) to the Island. The process is straightforward and quick. Jersey property income is always taxable at 20%, but for other worldwide income, the first £725k is taxable at 20% and the balance taxable at just 1%. Through pre-immigration structuring, it is possible to efficiently cap an HVR’s Jersey income tax liability at £145k.
On moving to the Island, it is essential that pre-immigration tax advice is taken to ensure that any necessary structuring is undertaken and all opportunities are optimised. It is important that advice is sought regarding the home jurisdiction. We have advised and assisted many individuals in breaking tax residence in their home jurisdiction and maintaining non-residence.
Once you have moved to the Island, we can provide you with the soft landing that you require to be able to settle into island life. We can also provide you with the ongoing administration of pre and post-immigration structures put in place to ensure your wealth management strategy is implemented efficiently.
Jersey also seeks to encourage suitable high-value, low resource businesses to locate in Jersey. A safe, stable environment with robust infrastructure, the availability of suitably qualified personnel, experienced administration and office support staff make Jersey an appealing choice for a business to operate from or to use as a headquarters function for international business.
Before a business can operate in Jersey, approval from the Population Office is required by submitting a business licence application, together with a detailed business plan.
The application process can be straightforward, however; there are also pitfalls. We can guide you through this process to ensure a smooth path to obtaining the necessary approval to operate in Jersey.
Once you have obtained approval, there are some other taxes and operational matters you will need to consider to prepare for the move here.
From a local tax perspective, part of the process for HVRs and businesses involves discussions with the Islands’ authorities. The relationships we have built up over many years with the authorities are invaluable in ensuring a positive outcome for our clients.
Why not contact me for a free high-level discussion to see whether this is something that would benefit you.
Baker Tilly Channel Islands Limited is a chartered accountancy practice registered with the Institute of Chartered Accountants in England and Wales (ICAEW).
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Baker Tilly Channel Islands has a proven track record of successful HVR and business licence applications. We can help you by guiding you through the application process. We will work pro-actively with you to achieve efficient solutions in respect of your local and international tax considerations; provide direct access to senior management throughout our engagement, and combine our local expertise with specialist knowledge from tax practitioners in other firms within the Baker Tilly International global network.
Our core team has wide-ranging experience in providing tax and advisory services including international structuring, estate planning, structuring for property holding, exit strategies and employment tax matters.
At Baker Tilly Channel Islands we believe our service proposition makes us different. We have listened to the market, and have built our culture around excellent client service. You will always have access to a decision maker; our teams are fully qualified professionals who create long-lasting relationships; we provide a quick response through our flexibility, competitive fixed fees and we share a culture in the Baker Tilly International network of close collaboration with our international colleagues.
David heads up the Baker Tilly Channel Islands Tax practice from Jersey, having moved there from the UK in 2008. He has a broad experience in tax ranging from handling the corporation tax affairs of multi-national groups; structuring the personal tax affairs of high net worth individuals; and advising owner managed businesses. He has extensive experience in assisting individuals and/or their businesses with moving to Jersey, dealing with Jersey and Guernsey employment tax matters and property taxation in the UK, Jersey and Guernsey.