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Met with Locate Guernsey

Tax advice received

Found a law firm

Found the right property

Arranged schooling for the kids

Sorted out your business affairs

Arranged health insurance

Moved your Private Banking relationship?

Relocating to Guernsey is generally a

smooth process and with the help of

Locate Guernsey and firms such as Cooper

Brouard, much of the stress can be taken

away. Most people understandably focus

on their property, children, tax affairs and

business interests first and their Private

Banking relationships can be treated as a

lower priority. This can potentially result in a

nasty surprise at some time in the future.

From a banking perspective, the key

questions to consider when moving to

Guernsey from the UK are as follows:

1. Does your existing investment portfolio

contain ‘UK situs assets’ and are these

still liable to UK taxation? Do you know

what a ‘UK situs asset’ is?

2. Do you still own a UK property and are

you aware of the UK Inheritance tax


3. Is your banking relationship still in the UK

and does this represent an unwanted UK


4. Does your current UK banker fully

understand Guernsey taxation and know

for example that the tax year is different

from the UK?

5. Is your current banker authorised and

regulated by the Guernsey Financial

Services Commission and if not, what are

the limitations placed on the service you

may receive?

6. Are you still paying UK VAT on investment

management fees?

7. Will you continue to receive personalised

service or does the stretch of water now

alter the service levels provided?

8. What are the options in Guernsey?

Normally when we meet with clients for

the first time and raise these topics, we

see reactions ranging from very calm

to confusion and total panic. The most

common issue is that the client still has a UK

focused portfolio, full of ‘UK Situs Assets’

which may be liable to UK Income tax,

Capital Gains tax and Inheritance tax. Your

Relationship and Investment Managers will

need to be experienced in ‘non UK Situs’

investment management in order to be able

to help. The good news is that portfolio

performance can still be very strong, even

when avoiding UK situs assets and that

clients can still gain access to certain UK

related investment opportunities, despite

such potential restrictions.

By an individual moving their banking

and investment relationship to the island,

their relationship manager should be more

accessible and a potential UK nexus is

removed. Further, paying UK VAT on any

investment management services provided

out of the UK is no longer required as

Guernsey based investment managers do

not levy any VAT.

Guernsey is home to a number of the leading

global Private Banks, as well as being home

to several boutique investment management

firms. With the choice locally and a

competitive market place, local residents

do not need to maintain their links to a UK

entity. The larger private banks will offer a

range of services including Discretionary

portfolios, Advisory portfolios, lending and

cash deposits. The smaller firms may offer

Investment Management and stock broking,

using a third party bank as custodian. All

firms should be able to provide annual

income statements as of year-end to assist

with the completion of the Guernsey Income

tax returns.

At Julius Baer, we have an experienced client

team who look after a select number of high

net worth clients, backed by our very strong

Aa2 credit rating. Many of these clients have

relocated from the UK and have moved

their main banking relationships out of the

UK accordingly. A comprehensive range of

Private Banking services are offered locally,

with the Guernsey office being a branch of

the head office in Switzerland.

Bank Julius Baer & Co Ltd, Guernsey

Branch, is licensed in Guernsey to provide

banking and investment services and is

regulated by the Guernsey Financial Services

Commission. It is a participant in the

Guernsey Banking Deposit Compensation

Scheme. The Scheme offers protection for

‘qualifying deposits’ up to £50,000, subject

to certain limitations. The maximum total

amount of compensation is capped at

£100,000,000 in any five year period. Full

details are available on the Scheme’s website

or on request.

Craig Allen

Head of Investment Management

Bank Julius Baer & Co Ltd, Guernsey