Synopsis
Jersey is the largest of the Channel Islands and lies in the English Channel off the north west coast of France. The population is approximately 91,300 (July 2007) with the principal centre of business activity being St. Helier.
The Channel Islands have a unique constitutional arrangement with the UK. The islands are possessions of the English Crown as distinct from colonial and overseas dependencies of the United Kingdom and accordingly the locally elected legislative assemblies have the exclusive right to legislate on matters of domestic concern to the islands (including taxation) whilst the United Kingdom Home Office is responsible for the external affairs of the islands.
The islands are associated members of the European Union ("EU") and as such are only subject to European law in so far as they specifically contract in to the EU. Thus they have elected to become part of the common tariff and agricultural levy system but are not subject to European law in most other areas.
The official language is English although French is still widely spoken and the legal system is based upon a mixture of English and French law.
Jersey has signed double taxation agreements which provide for the exchange of information with the United Kingdom and with Guernsey so UK residents should carefully consider whether Jersey is the correct place in which to set up an offshore structure.
A JERSEY EXEMPT COMPANY
Until 2 August 2008, companies incorporated in Jersey but owned by non-Jersey residents and doing no business with Jersey resident individuals or corporations were granted exempt status in Jersey. The exempt regime has been replaced by a new structure known as zero/ten. Provided the beneficial owners are not residents of the island, the company will be zero-rated for Jersey tax purposes.
Such companies have the following characteristics:
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Last reviewed: Wednesday, May 26, 2010
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