GAT Newsletter January 2019

GAT Industry News

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News


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Happy New Year to our Membership

With best wishes to all of our Members for a healthy and prosperous 2019.

Members are advised that we have issued our annual invoices for both corporate and personal members for 2019.

If you have not received your invoice for 2019 please email us info@guernseytrustees.org.


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HMRC's consultation: The Taxation of Trusts

Last November we advised members that HMRC had issued a consultation paper on the taxation of trusts which was being reviewed by the GAT/STEP Combined Technical Committee.  The consultation document and associated paperwork can be found here.

The Technical Committee feel that there are a number of inaccuracies and misunderstandings outlined in the document and are preparing an industry response. The deadline for responding has now been extended to 28 February 2019 and therefore if you have any comments for the Technical Committee to consider in relation to this consultation, please advise us by email.


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Guernsey Finance Industry Update

Nearly 300 individuals attended Guernsey Finance's Industry Update last week at St James, including many of our own committee and GAT members.

Guernsey Finance have made both the slides and the Q&A responses available on their website.  Click below to view.

View slides
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Chamber of Commerce Speech

Deputy Gavin St Pier, President of Policy & Resources Committee speaks at Chamber of Commerce Lunch on Monday 21st January. 

Click below to read the full speech.

Read full speech here
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Family Office growth plans afoot

Plans for Guernsey to enhance its offering for family office structures for high net worth individuals reflect the mood of the market, according to a Guernsey lawyer.

Nicholas Donnithorne, head of the trust and pensions team at Guernsey law firm Babbe, said that sizeable family offices have been relocating to the island in recent months.

Dr Andy Sloan, Deputy Chief Executive, Strategy, at Guernsey Finance, is driving the development of the family office workstream as part of Guernsey’s new Financial Services Policy Framework. 

Dr Sloan presented to the GAT Committee this month on his objectives for the Family Office Strategy and the Financial Services Policy Framework. 

Full article
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Brexit Update

We are at an important juncture in the Brexit process, with significant consequences for our community.

President of the Policy & Resources Committee, Gavin St. Pier
Read full statement here

Deputy Gavin St Pier addresses the States of Guernsey Assembly on 30th January 2019.


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Banking sector - is the future brightening?

Guernsey’s banks remain a vital part of the island’s finance sector, with total deposits of over £90 billion being reported in the most recent statistics published on 30th September 2018.

Read the latest thoughts on the banking sector from David Oxburgh, Chair of the Guernsey International Business Association.

Read full statement here
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Summary minutes

Please find below a link to the summary minutes for December's meeting of GIBA Council.

GIBA Summary Minutes December 2018


Forthcoming Events


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Events Calendar

Remember to check our Events Calendar for Industry presentations and other events that may be of interest.
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STEP Lecture Series 2018/19

Winter Bonus Lunchtime Lecture

1st February 2019 – 12-1pm

Dorey Room, St James

Due to popular demand Rupert Morris will repeat his lecture recently presented at the sold out GAT members luncheon. This event is also fully booked but please click on the image below to be placed on the waiting list.

Topic:  The New (New) Handbook

Speaker: Ruper Morris, Walkers LLP / Deputy Chair STEP Guernsey

Proposed Revisions to Guernsey’s AML/CFT Regime

For a full biography and more details please visit stepguernsey.org

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Lunchtime Lecture Number 9

8th February 2019 – 12-1pm

Dorey Room, St James

Topic: Property Taxation: Episode 6 – HMRC Strikes Back

Speakers: Alex Hunt and Sarah Cormack - Mills & Reeve LLP

Presentation summary:

Having slowly eroded offshore planning opportunities for the UK residential property over recent years, HMRC have now gone into battle with offshore structures for UK commercial property. Sarah Cormack and Alex Hunt will talk to us about where we are now, how we got here and what we can do about it.

For a full biography and more details please visit stepguernsey.org

Click on the image below to book.

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Lunchtime Lecture Number 10

25th February 2019 – 12-1pm

Dorey Room, St James

Topic: The Rewards and Pitfalls of the Art Market: An independent perspective.

Speaker: Charles Cochrane, Cochrane Adams Fine Art Agent

Presentation summary:

Charles will look at inherent risks to buyers and sellers of art and some recent developments introduced to deal with those risks. In particular he will examine: the participants in the art market and what they do; the pitfalls and rewards of buying art; an analysis of selling art looking at auction and private sales; and the development of guarantees and private sales at auction.

For a full biography and more details please visit stepguernsey.org

Click on the image below to book.

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IBA 24th International Private Client Conference

4th March 2019 - Claridge's, London

8:00am - 5:00pm

WE ARE GUERNSEY will once again be the headline conference sponsors of IBA’s 24th International Private Client conference, taking place on Monday 04 and Tuesday 05 March at Claridge’s in London.

This world leading event regularly attracts over 150 eminent legal, business and regulatory professionals from more than 40 jurisdictions to examine the hottest issues involving international wealth transfer, private clients’ taxes, estate planning and much more.

For more information on the event, please click here.


Sponsor News



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We would like to give  thanks to our Sponsors for their support.

  • Asset Risk Consultants
  • Alternative Solutions Limited
  • Carey Olsen
  • KPMG
  • Walkers (Guernsey) LLP
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Guernsey substance requirements update – foundations

Amendments to Guernsey's new substance regulations, which came into effect on 1 January 2019, have provided much needed clarity regarding the treatment of Guernsey foundations under the new legislation and have confirmed that they are outside the scope of the new substance requirements.

When the new substance requirements legislation was first introduced, trusts and partnerships were outside the scope of the new requirements and companies were in scope. However, the position of foundations was not clear, owing to the fact that Guernsey's Revenue Service take the view that a foundation falls within the definition of a company for tax purposes. On this basis, foundations were also potentially within scope of the new substance requirements.

As a result of this being brought to the attention of the Revenue Service, further amendments have been made to the regulations introducing the new substance requirements.  This was achieved by The Income Tax (Substance Requirements) (Implementation) (Amendment) Regulations, 2018, which now expressly excludes Guernsey foundations from the new substance requirements with effect from 1 January 2019. The exemption also extends to equivalent bodies created under the law of any other jurisdiction (however named).

Carey Olsen counsel Laila Arstall said: "The clarification is to be welcomed. The amendment makes it absolutely clear that foundations are now rightly considered as an entity that will not be subject to the substance requirements."

For further information on Guernsey's new substance requirements and related changes to corporate tax residence rules, please refer to the following Carey Olsen briefings:


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Jersey Court of Appeal Clarifies What’s Needed for Rectification of a Trust

In December 2018, the Jersey Court of Appeal issued a judgment which has clarified the test for rectification of a trust (view here), with some corresponding criticism of the rationale in the Royal Court’s original decision (view here), but ultimately still held that the trust in question should be ratified, albeit to a more limited extent. At both hearings Walkers' Niall MacDonald represented the interests of minor and unborn beneficiaries and has written the following client advisory.

Read advisory here

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