Tax Haven Guernsey Sees ‘Notable Increase’ in Investment Funds Amid Global Avoidance Crackdown
A tightening noose around the necks of tax avoiders in some parts of the world saw Guernsey’s financial regulator approve 103 new investment funds in the crown dependency during 2013.
There is no capital gains tax or inheritance tax in Guernsey. The corporation tax on financial firms is just 10%, below half that of the UK mainland.
“During 2013 we saw a notable increase in the number of new funds being approved for domiciling or servicing in Guernsey,” said Fiona Le Poidevin, chief executive of lobbyist Guernsey Finance.
However, the value of assets under management in Guernsey slipped by £10.8bn, or 3.9%, during the year to £266bn because sterling strengthened against the US dollar.
G20 countries have agreed to crack down on tax avoidance and evasion across the world. Many tax havens are now signing up to information-sharing agreements
In November, Chancellor George Osborne signed an account information-sharing deal with the Cayman Islands, a UK crown dependency in the Caribbean that levies no income or capital gains tax on the money flowing through the island.
Another deal with Switzerland sees British domiciles taxed on their banking deposits in secretive Swiss institutions. In 2013, £818m was raised for the Treasury from the agreement.