Property structures have been a familiar part of finance industry business within the Channel Islands for a number of years, but more recently both Jersey and Guernsey have experienced an increase in this sector. UK and other European asset managers have driven this growth by utilising Unit Trust structures to launch a significant number of Channel Island domiciled real estate investment funds.
The driver for growth of this and business from the mainstream UK corporate property company sector has the creation of tax efficient structures to manage the significant potential tax liabilities inherent in this sector, particularly with respect to Stamp Duty Land Tax.
Although the UK Chancellor has now removed the relief mechanism that originally encouraged UK promoters to use the Channel Islands, the growth has nonetheless continued. Promoters of these vehicles, having discovered that the islands have the necessary infrastructure and experienced professionals to look after these types of structures, now see the Channel Islands as a preferred choice for property structures.
Continuing growth in assets under management has also been reflected in an increased demand for market traded securities in the property sector. Recent market conditions have resulted in a flurry of listings of Channel Island domiciled funds on the various London and other European stock exchanges.
The PwC Channel Islands firm have a dedicated and responsive group of professional advisors and senior accountants who provide advice in personal and corporate tax structuring, merger and acquisition services and detailed advice and assistance on CISX, London and European stock exchange listings – all of this done locally with the support and knowledge of experts across the global PwC network of firms.