Jersey

*Updated June 2019*

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• Legal system
• Inheritance and succession
• Estate planning
• Taxation
• Residence and domicile
• Other relevant information

Legal system

Jersey has a legal system that blends the legacies of Norman customary law with the influences of the common law.

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Inheritance and succession

Succession

In matters of succession, although there is freedom of testamentary disposition, légitime rights can be claimed against the movable estate of Jersey domiciliaries. Such rights were revised under the Wills and Successions (Jersey) Law 1993. Where a spouse and issue survive, the spouse can now claim household effects and one-third of the residue, with the children also claiming one-third. Where there are no children, the spouse can claim two-thirds; where there is no spouse, the children can claim two-thirds. In each case the remaining one-third may be disposed of at will. On an intestacy of movables, the spouse receives the household effects, the first GBP30,000 and half of the residue, with the children sharing the remaining half.

Jersey immovable property (i.e. real estate) may be freely disposed of by will, subject to a spouse’s right of life enjoyment of one-third of the Jersey immovables. On intestacy, the spouse has life enjoyment of the matrimonial home and owns an equal share of the Jersey immovables with each of the children as tenants in common. There can be no executors or trusts of Jersey immovables.

The Wills and Succession (Amendment) (Jersey) Law 2010 gave full inheritance rights to all illegitimate children in relation to their Jersey domiciled fathers’ movable estates, i.e. property other than Jersey immovables. These inheritance rights extend to both movable and immovable estates on intestacy and also give the right to claim légitime against a father’s movable estate.

The Probate (Jersey) Law 1998 (the Probate Law) streamlined probate procedures and introduced a fast-track system for deceased persons domiciled in England and Wales, Guernsey, Isle of Man, Northern Ireland or Scotland. Formal validity of wills is now simplified and aligned with the conditions stated in the Convention of 5 October 1961 on the Conflicts of Laws Relating to the Form of Testamentary Dispositions (the 1961 Hague Convention). Jersey probate law goes further, so that formal validity is met providing that Jersey law is satisfied, regardless of the domicile, residence or nationality status of the testator or where the will was executed. It is common for foreign domiciliaries to make Jersey wills dealing with assets situated in the island. Disposing of assets situated in Jersey without obtaining a Jersey grant is an offence punishable by imprisonment and an unlimited fine.


Jersey has introduced the Civil Partnership (Jersey) Law 2012, granting same-sex couples rights and responsibilities identical to those of opposite-sex couples. These rights extend to property rights and succession rights. Same-sex marriage in Jersey has been legal since 1 July 2018.

Family law and defined inheritance rules

See above.

Probate process

The Probate Law streamlined probate procedures and introduced a fast-track system for British domiciliaries. Formal validity of wills now follows the 1961 Hague Convention, and it is common for foreign domiciliaries to make Jersey wills dealing with assets situated in the island. Disposing of assets situated in Jersey without obtaining a Jersey grant is an offence punishable by imprisonment and an unlimited fine.

Mental capacity

The age of majority under Jersey law is 18 years. A will can be validly made or revoked by any person who is of age, mentally fit and whose affairs are not under the control of another. The Capacity and Self Determination (Jersey) Law 2016 came into effect on 1 October 2018. This law sets out a new assessment framework for capacity and the consequences for decision-making by the relevant individual, the introduction of two types of lasting powers of attorney (one in respect of health and welfare, the other in respect of property and affairs) and widened powers for the court. A code of practice is to be issued to accompany this new law.

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Estate planning

Use of trusts in estate planning

The Trusts (Jersey) Law 1984 (the Trusts Law) provides a legal framework for the establishment of trusts, for the guidance of trustees and for the protection of beneficiaries. The law is not a codification and the Royal Court of Jersey will look to judgments of other courts as being persuasive in relation to certain trust matters, particularly in the absence of any Jersey authority. The Trusts Law has been amended on a number of occasions, most recently as described below.

The uses of trusts established in Jersey for individuals include:

• Estate planning;
• Avoidance of probate and succession laws;
• Asset protection;
• Management and devolution of family wealth;
• Promotion of charitable and philanthropic causes; and
• Tax planning.

The uses of trusts established in Jersey for commercial reasons include:

• Employee benefit structures;
• Pension funds;
• Securitisation and off balance sheet financing arrangements;
• Acquisition of commercial property using unit trusts; and
• Organisation of private equity, hedge and real estate investment arrangements.

The most widely used and flexible of trust types in the context of private wealth is the discretionary settlement. However, Jersey trusts often take other forms and may be categorised in other ways, such as declarations of trust (with no named settlor), will trusts, purpose trusts (either charitable or non-charitable), fixed interest trusts, unit trusts, pension trusts and employee benefit trusts. Jersey also recognises implied trusts, resulting trusts, constructive trusts and spendthrift trusts. It is possible to adopt Jersey trusts for different countries, such as a revocable trust or grantor trust for the US, or a Shari'a-compliant trust for Islamic nationals.

Although the general law of trusts, powers and obligations is well-rooted and established, Jersey recognises the need to ensure that the rules relating to this legal concept are kept under constant review and enabled to meet the needs of modern times.


For example, the Trusts (Amendment No. 5) (Jersey) Law 2012 came into force on 2 November 2012 and made, inter alia, the following amendments to the Trusts Law. It confirmed a broad meaning of ‘purpose’ in the context of purpose trusts; enhanced the ‘firewall’ provisions relating to Jersey law trusts; clarified the position with regard to trustees contracting with themselves; and introduced a longstop period for limitation claims.

Furthermore, the Trusts (Amendment No. 6) (Jersey) Law 2013 came into force on 25 October 2013 giving statutory force to the rule in re Hastings Bass and to the doctrine of mistake in its application to trusts. This amendment is of particular interest to trust practitioners, not least because, by virtue of decisions of the English courts culminating in the judgment of the Supreme Court in Pitt v Holt and Futter v Futter, the scope of the Hastings Bass principle had narrowed considerably, and the amendment had the effect of reversing that change insofar as Jersey law trusts are concerned. This is highly desirable for trustees, settlors and beneficiaries in situations where the alternative would be expensive and potentially risky litigation against professional advisors.

Most recently, the Trusts (Amendment No 7) (Jersey) Law 2018, which came into force on 8 June 2018, made a number of changes that are relevant to the use of trusts in estate planning. The amendment clarified certain issues in relation to the disclosure of trust information. This amendment also clarified the position on the ability of settlors of Jersey trusts to reserve powers, providing that a trust containing such reserved powers has a presumption of lifetime effect and established that any income accumulated but not distributed or capitalised may remain as income for such time as the trustees decide. Finally, this amendment has expanded the list of persons on whose behalf the court may approve a variation of trust to include missing or untraceable beneficiaries.

Use of foundations in estate planning

The concept of foundations was introduced into Jersey law by the coming into force of the Foundations (Jersey) Law 2009 (the Foundations Law). For clients and authorities originating in civil-law jurisdictions where the concept of a trust may be less familiar, a foundation can be a more attractive vehicle. It has different qualities and attributes that may appeal to certain investors. For example, unlike a trust, a foundation is established by incorporation and becomes a distinct legal entity although, unlike a company, it is an ‘orphan’ entity without the presence of shareholders. As well as being used for wealth management and estate planning, foundations have been used in more specialist areas such as long-term charitable objectives or capital structuring arrangements, where it is desirable that property be given to a legal entity and applied for specific purposes.

As with companies and trusts, the use of foundations is subject to compliance with the regulatory standards established by the Jersey Financial Services Commission (JFSC). In this regard, it is a statutory requirement for all Jersey law foundations to appoint a qualified person (QP) to sit on the foundation council. The QP is defined as a person who is registered under the Financial Services (Jersey) Law 1998 (the Financial Services Law). It is the responsibility of the QP not only to incorporate the foundation but also in practice to maintain the records of the foundation at its business address. A further legal requirement is the appointment of a guardian whose role will be to take such steps as are reasonable in all the circumstances to ensure that the council of the foundation fulfils its functions of administering the assets of the foundation and carrying out the objects of the foundation.

The Foundations Law has been supplemented by regulations that deal with such matters as the winding up of foundations, mergers of foundations and the continuance of foreign law foundations into Jersey.

Use of trusts and foundations for philanthropic purposes

Trusts and foundations are the two key structures used for philanthropy in Jersey. The Trusts Law allows for the creation of both charitable and non-charitable purpose trusts. It is therefore possible to establish a trust for charitable purposes or, alternatively, for philanthropic purposes which may not be technically charitable. Equally, the Foundations Law is very flexible and allows for the creation of a foundation for purposes, known as objects, which are charitable, non-charitable, or both charitable and non-charitable.

The Charities (Jersey) Law 2014 (the Charities Law) complements the Trusts Law and Foundations Law by offering a voluntary system of registration in Jersey, for those wishing to register the structures as charities. The Charities Law:

• Introduces a register of recognised charities with general, restricted and historic sections, with distinct levels of public access to data on the register;
• Creates the office of the Commissioner who oversees all charities and ensures enforcement of the Charities Law; and
• Provides a framework by which charities in Jersey will be regulated.

Types of entities

i) Jersey companies

Jersey companies are used by residents and non-residents for many activities, such as investing in securities or property or acting as group holding vehicles. Strict regulations, including a robust authorisation process, apply to finance industry-related activities.

There is no ultra vires doctrine and companies enjoy the powers of a natural person. Directors are, however, bound by the commonly accepted fiduciary duties of a director. Although private companies are not required to file accounts or have them audited, they must keep accounting records. A Jersey company requires a minimum of one director and a secretary; the secretary may be a corporate body. A Jersey company (but no other body corporate) may be a director provided that it is registered to do so under the Financial Services Law and the corporate director does not itself have any corporate directors. With payment of an extra fee to the company’s registrar, there is a fast-track incorporation process whereby, subject to name approval and proper documentation, registration is possible on a same-day basis as opposed to taking the normal three to five working days.

The limited-life company (where the company’s life span and liquidation date are specified at the time of incorporation) was introduced by legislation in 1997. In 2002, legislation introduced other types of companies, including companies limited by guarantee and companies with shares of no nominal value. It permitted companies to be incorporated with one shareholder and facilitated the merger of two or more Jersey companies. It allowed companies incorporated in other jurisdictions to move to Jersey as Jersey-incorporated companies, and companies incorporated in Jersey to move elsewhere. Further, in late 2018, Jersey's companies law was amended to permit the demerger of Jersey companies such that, subject to certain conditions and requirements being met, a Jersey company may now become two or more Jersey companies (which may or may not include the demerging company). Non-Jersey registered companies may legitimately base their activities in Jersey, subject, where relevant, to any necessary regulatory authorisations.

ii) Partnerships

Limited partnerships are frequently used for private equity structures and the establishment of family limited partnerships is also on the increase. The Incorporated Limited Partnerships (Jersey) Law 2011 and the Separate Limited Partnerships (Jersey) Law 2011 extend the range of partnerships available in Jersey and further broaden the choice of investment structures. Incorporated limited partnerships and separate limited partnerships both have separate legal personalities. However, for certain capital gains tax purposes outside Jersey, there is the possibility that incorporated limited partnerships may not be transparent for gains in the same way as other types of partnership.

iii) Funds

Jersey is an offshore finance centre for funds. The fund industry is supported by a robust regulatory framework, which, together with new codes of practice, allows fund administrators to authorise their own fund offerings within set guidelines.

Jersey offers a full spectrum of fund regulation, from highly regulated recognised funds, which may be marketed widely to the general public, to unregulated funds which fulfil certain criteria and therefore may opt out of regulation as a fund in Jersey. This has made Jersey attractive as a domicile for alternative investment funds (property, private equity and hedge) targeted at sophisticated and/or high-net-worth investors.


Jersey funds may be established as unit trusts, limited partnerships, separate limited partnerships, incorporated limited partnerships, companies, protected cell companies and incorporated cell companies.

The JFSC uses its regulatory powers to protect investors and to maintain the island’s reputation. The criteria for granting approval and the manner in which the fund will be regulated largely depend on whether the fund is private or public and whether it is open or closed-ended. In particular, a light regulatory touch is applied in the case of funds created for the benefit of sophisticated or institutional investors or where the fund has a high minimum-level of investment, provided that the appropriate risk warnings are included in the offer document.

Jersey-based fund-service providers (other than functionaries of recognised funds, which are separately regulated) must be registered under the Financial Services Law to conduct fund services business. Following the implementation of the EU's Alternative Investment Fund Managers Directive in 2013, regulations and codes apply in Jersey to alternative investment fund managers (AIFMs) actively marketing funds in the European Economic Area (EEA). Funds marketing outside the EEA are unaffected as long as they do not have an EEA AIFM.

iv) Protected cell companies and incorporated cell companies

Legislation in Jersey permits the creation of cell companies, both incorporated cell companies (ICCs) and an enhanced version of the traditional protected cell company (PCC), and includes features that extend the scope of these companies for investment purposes.

The ICC involves the formation of separate, legally recognised cells within the overall structure, with each cell established as a separate incorporated Jersey company.

This is in contrast to the traditional PCC where all the cells combined create one legal entity and each cell is not treated as a separate legal personality.

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Taxation

Income tax system

Income tax is the only form of direct taxation under Jersey law.

Personal income tax rates

The Jersey standard rate of income tax is 20 per cent (including resident partnerships and trusts with resident beneficiaries) and has remained at a rate unchanged for more than 60 years. Trusts are not taxable in Jersey provided that the settlor and beneficiaries are not resident in the island.

Corporate income tax rates

Generally speaking, Jersey companies are liable to income tax at a rate of 0 per cent, but certain companies which are regulated by the JFSC are taxed at 10 per cent. Jersey utility companies are liable to income tax at the rate of 20 per cent. 

Capital gains tax

There are no capital gains, estate or inheritance taxes in Jersey. 

Non-residents

A non-Jersey resident is charged income tax on Jersey-source income only (although by concession, Jersey bank interest and social security pensions are deemed to be non-Jersey source income for these purposes).

Withholding tax rate (non-treaty)

The current rate is 20 per cent in respect of applicable payments.

Withholding tax rate (treaty)

NOT APPLICABLE

Taxation at death

Stamp duty is payable on the net value of the deceased’s estate as at the date of death. If the deceased was domiciled in Jersey then their worldwide estate is brought into account. If they were not domiciled in Jersey, then it is only the net value of the Jersey-situs assets that are brought into account.

The duty must be paid in advance of the application for a Grant of Probate. It is calculated as follows:

Net value of estate duty

• Not to exceed GBP10,000: nil.
• Not to exceed GBP100,000: GBP50 for each GBP10,000 or part thereof.
• GBP100,000 to GBP13.36 million: GBP500 in respect of the first GBP100,000 plus GBP75 for each additional GBP10,000 or part thereof.
• To exceed GBP13.36 million: capped at GBP100,000.

Other taxes

The principal form of indirect tax payable in Jersey is a domestic tax on the supply of goods and services. The payment of this tax is governed by the Goods and Services Tax (Jersey) Law 2007 and is 5 per cent. This does not generally apply to non-resident international business.

Tax treaties

Jersey has 27 double taxation agreements (15 are full agreements, 12 are partial agreements).

Tax information exchange agreements (TIEAs)

The number of TIEAs signed is now 38. Since 1 June 2014, Jersey has also been party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, which provides for exchange of information on request on the same basis as the bilateral TIEAs. www.gov.je/TaxesMoney/InternationalTaxAgreements/DoubleTaxation/Pages/index.aspx

On 13 December 2013, Jersey entered into an inter-governmental agreement with the US in relation to the Foreign Account and Tax Compliance Act (FATCA). The goal of FATCA is to enable the US Internal Revenue Service (IRS) to identify US persons (generally US citizens or residents) seeking to evade US taxation by holding assets in foreign (i.e. non-US) accounts, whether in their own name or via non-US structures such as trusts or funds. Jersey financial institutions are required to report on an annual basis the identity of, and certain other information about, direct and indirect US investors in Jersey entities to the Jersey tax authority for onward transmission to the IRS.

On 29 October 2014, 51 jurisdictions (including Jersey, Guernsey, the British Virgin Islands and the Cayman Islands), signed an agreement to automatically exchange information based on art.6 of the Convention on Mutual Administrative Assistance in Tax Matters. This agreement specifies the details of what information will be exchanged and when, as set out in the Common Reporting Standard (CRS). Many other countries have since agreed to become signatories. First exchanges of information under the CRS occurred in 2017.

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Residence and domicile

Special rules on becoming resident

What constitutes residence for the purposes of attributing liability to Jersey tax is not statutorily defined. A person who is resident and ordinarily resident in Jersey is charged income tax on all of their Jersey and worldwide source income, whether remitted to Jersey or not. A person who is habitually resident in Jersey is charged income tax on all Jersey source income and any worldwide source income which is remitted to Jersey.

If an individual whose home has been abroad maintains an abode in Jersey that they use, they are regarded as resident for any year in which they visit Jersey, for whatever length of time. In addition, if their visit spans one complete calendar year they are regarded as ordinarily resident and if their visits are habitual after four years, unless intention to make them habitual is shown earlier. However, an individual whose main activities are abroad, in the sense that they have a home and a business or professional activities abroad which keep them more or less continuously outside Jersey, is not regarded as ordinarily resident, unless the annual average period spent in Jersey amounts to or exceeds three months.

Special rules on ceasing residence

See above.

Domicile concept for gifts and inheritance

Jersey has concepts of both domicile and residence. However, the concept of domicile is principally only relevant to the rules governing the succession to movable property under Jersey law.

Taxation of holdings by non-residents on death and of gifts

• Gifts: not applicable.
• Death: see stamp duty charge above.

Reporting/auditing requirements

Yes. Annual income tax form to be completed and returned to Comptroller of Taxes.

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Other relevant information

Asset protection laws

Jersey does not have any specific asset-protection legislation. However, it does have robust firewall provisions in its trusts and foundations legislation. Any question concerning the validity or interpretation of a trust, the validity of effect of any transfer of other disposition of property to a trust or the capacity of a settlor shall under art.9 of the Trusts Law (as amended) be determined in accordance with the law of Jersey and no rule of foreign law shall affect such a question. Article 9 goes on to state that any such question shall be determined without consideration of whether or not the trust or disposition avoids or defeats rights, claims, or interest conferred by any foreign law upon any person by reason of forced heirship rights. Further, the law of Jersey relating to légitime and conflict of laws shall not apply to the determination of and such question unless the settlor is domiciled in Jersey.

Article 32 of the Foundations Law provides that any question that arises in relation to a Jersey law foundation or the founder shall be determined in accordance with Jersey law. It goes on to say that the incorporation of a foundation and any endowment of a foundation is not void, voidable, liable to be set aside, invalid or subject to an implied condition because of any foreign forced heirship rights.

Foreign currency restrictions

No.

Foreign ownership restrictions

No.

AML/due diligence and other requirements and regulatory procedures for advisors

Jersey has a comprehensive legislative framework in place to combat money laundering and to counter the financing of terrorism. All financial services businesses must comply. Jersey recognises that it must keep its regulatory regime under constant review in order to maintain the appropriate level of legislation required to comply with international standards.

• To establish a trust: due diligence on settlor, beneficiaries and protector (if applicable), source of funds, rationale for structure.
• For incorporation: due diligence on ultimate beneficial owner(s), rationale for company.
• To open a bank account: company – due diligence on ultimate beneficial ownership. Trust – due diligence on settlor. 

Other points of interest

The JFSC supervises the financial services sector in Jersey, including depositor, investor and policyholder arrangements. The Financial Services Law requires trust and company service providers, investment businesses, funds services businesses and insurance mediation businesses to be registered. The JFSC has issued various codes of practice to establish sound principles for the conduct of financial services business.

Key resources for further information

LEGISLATION

• Control of Borrowing (Jersey) Law 1947.
• Capacity and Self-Determination (Jersey) Law 2016.
• Charities (Jersey) Law 2014.
• Collective Investment Funds (Jersey) Law 1988.
• Companies (Jersey) Law 1991.
• Criminal Justice (International Co-operation) (Jersey) Law 2001.
• Financial Services (Jersey) Law 1998.
• Foundations (Jersey) Law 2009.
• Goods and Services Tax (Jersey) Law 2007.
• Income Tax (Jersey) Law 1961.
• Investigation of Fraud (Jersey) Law 1991.
• Limited Partnerships (Jersey) Law 1994.
• Money Laundering (Jersey) Order 2008.
• Probate (Jersey) Law 1998.
• Proceeds of Crime (Jersey) Law 1999.
• Trusts (Jersey) Law 1984.
• Wills and Successions (Jersey) Law 1993.

WEBSITES

• Companies Registry: www.jerseyfsc.org
• Taxes Office: www.incometax.gov.je
• Jersey Financial Services Commission: www.jerseyfsc.org
• Jersey Legal Information Board: www.jerseylaw.je.

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STEP branches in Jersey

The Jersey Branch of STEP, which was established in 1993, is one of the largest and most active in the world. The branch is run by a committee of twelve professionals drawn from across the island’s wealth management industry. 

• STEP Jersey

Members in Jersey

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Firms in Jersey

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