Trust practitioners advised to find alternative tax structures
Monday 6th August 2012, 2:54PM BST.
THE Island’s trust sector could be hit by changed UK tax rules unless new structures are devised to allow high value UK residential properties to continue to be held tax-free locally.
Tax expert at accountancy group Mazars, Lindsay Pentelow, warned of the potential dangers to the vital sector when he spoke to an audience of about 30 financial professionals at St Paul’s Centre.
He said that the industry faced challenges as a result of new UK tax laws designed to effectively introduce a ‘mansion tax’ on properties valued at £2 million or more.
Valuable UK properties have been commonly held in Jersey trusts for tax avoidance and other reasons for many years.
The rate of Stamp Duty Land Tax payable on acquisition of a residential property valued at over £2 million increased from 5% to 7% in March for individual buyers.
Such properties will also be subject to an annual charge of £15,000 to £140,000 dependent on value.
Full story in Monday’s JEP