Media statement in response to the announcement in the UK Budget of a new HMRC scheme, to be introduced later this year, enabling UK resident customers to declare ‘undeclared’ offshore bank accounts:
It is too early to determine precisely the impact of the latest HMRC scheme for disclosure on Jersey’s Finance Industry but it is not anticipated to be significant.
Primarily this is because the model on which banks in the Island develop their business is not based on UK resident customers placing money offshore. A proportion of Jersey’s banking business involves clients who live or work overseas, or in some cases have retired abroad, maintaining savings or funds with banks or finance houses in Jersey. This is the most tax efficient option for many of them and is an entirely legitimate practice.
There are a number of resident customers in the UK with legitimate reasons for keeping funds offshore also. They, like all customers, would be expected to disclose to their domestic tax authorities any information about their accounts in accordance with the rules of the tax authority. Clients who have done so should have nothing to worry about.
The question of UK resident customers with offshore bank accounts is an issue mainly for the UK and their rules on taxation, rather than one for Jersey or the other offshore jurisdictions.
However the Industry appreciates that UK resident customers with legitimate reasons for keeping funds offshore, may seek reassurance from their offshore financial provider once more details are known.
The Industry is still awaiting the detail of any new HMRC scheme and would comment further when it knows the full extent of any new measures. However, the Industry, which would never condone any client evading his or her tax responsibilities, is confident that the implications for Jersey will not be extensive.
For further information, please contact Geoff Cook, Chief Executive, Jersey Finance Limited, on tel. +44 (0) 1534 836000 or e-mail firstname.lastname@example.org or Mike Sunier at Crystal Public Relations on tel +44 (0) 1534 618613 or email@example.com