For hedge fund professionals contemplating relocation, Garry Bell of PwC asks: Will your business prosper and your family thrive?
Are you looking for a jurisdiction that values wealth generation? Have you realised there’s a great low-tax location just 35 minutes from Gatwick? Moving there involves little-to-no cultural adjustments, ticks all the business boxes and promises a much warmer welcome than many other jurisdictions. With almost a quarter of the workforce employed in finance, Jersey’s sophisticated community recognises the essential local and global role played by the leading international finance centre it supports.
Jersey is a place where you can achieve a work/life balance while benefiting from a low-tax regime and retaining many of the cultural benefits of being in the UK. As part of a global network of firms, we at PwC CI are experienced in the process of assessing jurisdictions for relocation. In our experience, if you want to relocate successfully, two sets of factors must be considered equally:
Read on for a quick overview of how Jersey shapes up as a very attractive proposition, from both a business and a lifestyle perspective, for senior finance professionals and their families.
Corporate tax rates are 0% or 10% for financial services businesses. Fund management is generally taxed at the 0% rate. The tax authorities are very approachable and responsive and are willing to provide advance rulings very quickly.
Financial services infrastructure
The Island has a well-regulated and mature financial services industry, supporting infrastructure and impressive skills base. The regulator is both approachable and innovative.
Jersey’s excellent reputation is repeatedly recognised; the International Monetary Fund’s 2009 Report places it in the top division of international finance centres. The most recent Global Financial Centres Index rated it as the top offshore jurisdiction, and it was among the first jurisdictions placed on the OECD ‘white list’.
Ease of relocation
While protective of the island’s population, the authorities actively encourage suitable businesses and individuals to relocate to the island. They match the rhetoric with action and there are experienced civil servants that are tasked with assisting both businesses and individuals to relocate.
Ease of travel / commute
The UK is very close; there are regular flights to London and a number of regional airports. It is possible to be in central London by 9:15am, leave at 5:15pm and get home by 8:30pm. UK proximity also makes family visits, home or away, very easy.
Incoming high-net-worth individuals are taxed at special rates and tax liabilities can be effectively capped at £125,000. The general rate of income tax for other individuals is 20%. There is no capital gains tax, wealth tax, gift tax or inheritance tax.
The island is English-speaking and there is a mature and well-funded public infrastructure. It can feel like Surrey in the English Channel, with a view of France but without the traffic (and taxes).
Jersey has a long-standing and mature finance industry; one which supports and invests in the local community. The norm rather than the exception, finance professionals form a significant proportion of the Island’s working population, and are welcomed and accepted into the local community.
Jersey schools have excellent academic results; they follow the UK national curriculum and there are places available at all ages.
In Jersey you can work hard and play hard. The island is home to a rich array of excellent quality restaurants and hotels for business and pleasure. Whatever your passion, be it food, triathlon, horses or watersports, there are hundreds of stunning locations for you to do your thing. Jump on your yacht after work, tide permitting, get out in the bay and have supper in the rays of the evening sun.