Services

What we provide

Acting primarily for individual private clients and owner-managed businesses, we deal with all manner of UK and Guernsey personal and corporate tax and accounting issues, as well as the provision of advice to intermediary and professional firms on a range of complex tax issues.

Guernsey

Relocating to Guernsey

Emigration and immigration planning to and from Guernsey is important to consider before you board the ferry or aircraft. Guernsey offers certain tax breaks for new residents that are enshrined in legislation, which may be beneficial, depending upon your circumstances. Indeed, your actual tax residence position should also be carefully considered for both the jurisdiction of departure and arrival. It may be that the answer is not as simple as you think! The resulting tax liabilities could be rather unpleasant. With the advantage of LTS Tax pre arrival/departure taxation advice as well as social security/national insurance considerations, plus other “soft” issues, you will be best placed to take advantage of all the life benefits that Guernsey has to offer in the knowledge that you would have been well advised on the important fiscal aspects of your move.

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Guernsey tax advice

Our team has a vast wealth of experience and knowledge regarding the Guernsey tax system, as well as a good working relationship with the Guernsey Revenue Service. In particular, we specialise in providing tax advice in relation to;

  • Individuals moving to/from the island
  • Tax efficient asset restructuring for trusts and companies
  • All aspects of advice in relation to incorporation, running and liquidating Guernsey companies
  • Double Tax Agreements
  • Economic Substance
  • Guernsey Rental Properties

Preparation of tax returns

We prepare all types of tax returns and computations for Guernsey resident individuals, including individuals, companies and executors.

The Guernsey tax year runs from 1 January to 31 December and for individuals who are both Guernsey and UK resident, income needs to be allocated correctly between the tax years and often declared on both tax returns.

Accounting and book-keeping

With a broad client base, we prepare accounts for small locally owned and managed trading companies to large investment portfolio and property holding companies owned by Guernsey resident clients.

We offer a full accounting service depending on the client’s individual needs, whether it be regular bookkeeping from source records, for example bank statements and investment portfolio statements, or preparing financial statements from software such as QuickBooks, Xero, Sage and other such accounting software packages.

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Substance and corporate residence advice

We advise companies on their corporate residence position including the implications of the newly introduced substance requirements. The substance requirements, effective for accounting periods after 1 January 2019 and applicable to all company’s resident in Guernsey, apply to a range of service activities. Failure to meet the substance requirements is likely to result in financial penalties and ultimately strike-off. 

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Pensions including, RATS/QROPS/IPPs/EBTs/EFRBS

We provide UK and Guernsey tax advice to members of pension schemes and the schemes themselves. This includes tax consequences to the members and the schemes of transfers, contributions and investments.

Advising on real estate holding structures

The use of Guernsey real estate holding structures for acquiring and holding residential and commercial property in the UK and elsewhere can provide significant taxation benefits. LTS Tax advises on the use of all manner of Guernsey property holding vehicles including, inter alia, Companies, Trusts, Unit Trusts, Limited Partnerships and Funds, as appropriate.

UK

UK tax advice

With our broad range of knowledge and experience, as a firm of UK Chartered Tax Advisors. We are uniquely placed to be able to offer tax advice in most areas of UK taxation including, residence and domicile, personal and corporation tax, capital gains tax and inheritance tax. This is usually on the bias of a non UK resident individual or entity.

Preparation of tax returns

We prepare a number of UK tax returns for Guernsey and/or UK resident individuals. These include tax returns for non-UK resident individuals who have income subject to UK taxation including those who have UK rental properties or UK employment duties. The UK tax year runs from 6 April to 5 April and for individuals who are also Guernsey resident, income needs to be allocated correctly between the tax years and often declared on both tax returns.

We are also involved in the preparation of UK tax returns for individuals who have recently moved between Guernsey and the UK and involve UK split year issues. We will identify the jurisdiction in which income is taxable and claim relevant double tax credits to ensure that income is not subject to double taxation and is disclosed correctly in the relevant jurisdiction.

UK residence planning

The Statutory Residence Test (SRT) was introduced with effect from 6 April 2013 and determines whether an individual is UK resident or non-UK resident in any given UK tax year. As residence is a key determinant of an individual’s exposure to UK taxation, it is important that appropriate advice is obtained so that UK residence can commence or cease as is intended. At LTS Tax we are well versed and the complexities of the legislation and can advise those wishing to leave the UK and those who wish to return UK of the appropriate action required.

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Domicile planning

An individual’s domicile is a key factor in determining their exposure to UK Inheritance Tax (IHT) and it is also central when considering the UK Income Tax and UK Capital Gains Tax liabilities of non-UK nationals (“non-doms”) who become resident in the UK. LTS Tax can provide the appropriate IHT mitigation advice for those individuals who are or who become non-domiciled in the UK and can advise non-doms who wish to reside in the UK of the tax planning opportunities available to them including the use of the “remittance basis” of taxation and trusts.

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Inheritance tax planning

Inheritance tax (IHT) can have a significant impact on your estate, potentially taking up to 40% of your wealth upon death, as well as impacting certain transactions during your lifetime. It can affect not only UK domiciled individuals, but anyone with UK assets in their estate. However with appropriate tax planning, IHT can be significantly reduced or eliminated altogether, indeed it is often referred to as a ‘voluntary tax’. LTS Tax can provide bespoke tax advice and tailored solutions to help you to maximise the amount of your wealth to pass onto future generations by mitigating the effect of IHT. This includes recommending the use of appropriate reliefs and exemptions, as well as providing advice in relation to the tax efficient drafting of your will and the use of trusts as part of your wealth planning. In particular, the use of offshore trusts by non-UK domiciled individuals can be especially advantageous, providing an effective means of protecting your assets and managing their distribution to future generations, whilst offering numerous tax advantages.

IHT also impacts trustees, primarily in relation to ten year anniversary charges and exit charges. However trusts can also be liable to IHT on the death of the settlor and of life tenants in certain circumstances; this can often be overlooked and can have a significant impact on the trust, with IHT payable of up to 40% of the value of relevant trust assets. With appropriate planning, the impact of IHT on the trust can be effectively mitigated. Our highly qualified and experienced trust tax specialists can provide detailed UK (as well as Guernsey) tax advice to trustees, including IHT planning. We also offer a full range of tax compliance services, including the completion of any IHT forms and calculations that may be required.

Trust tax advice and compliance

Our dedicated trust tax team have a wealth of knowledge and experience, having previously worked across the industry in leading accountancy practices and fiduciary companies, both in the UK and in Guernsey.

We provide a comprehensive range of services for trustees, settlors and beneficiaries that range from routine tax return compliance to complex advisory and restructuring or remedial matters.

Examples of such services which we can offer include:

Compliance services

  • Annual UK trust tax & company returns;
  • NRCGT & corporation tax returns (in relation to a disposal of UK immovable property);
  • Inheritance tax returns in relation to a trust’s 10-year principal date and/or proportionate “exit” charge occurrence;
  • Annual calculation of the trust’s relevant income and stockpiled gains pools;
  • Registration for trusts which are required to notify HMRC via the Trust Registration Service;

Advisory services

  • Advising offshore trustees, settlors and beneficiaries in relation to their UK tax exposure & mitigation thereof;
  • Advising on current & historical reporting obligations in relation to offshore structures;
  • Direct & indirect UK immovable property transactions;
  • Periodic reviews of structures, thus ensuring that they remain both tax compliant and UK tax efficient;
  • Restructuring of structures in order to provide maximum intended benefit;
  • UK inheritance tax & estate planning for settlors and trustees;
  • Tax planning in relation to settlors and/or beneficiaries who may migrate to, or emigrate from, the UK;
  • Advising in relation to Employee Benefit Trusts (“EBTs”) and offshore pension schemes, including Employer Financed Retirement Benefit Schemes (“EFRBS”).

UK tax for non-residents on UK property

With the many changes to the UK legislation regarding non-UK residents disposing of all types of UK land and property, there are now various reporting and payment deadlines to adhere to depending on who is making the disposal.

We can advise on the tax consequences of all disposals, considering any planning opportunities and maximising any available reliefs. We can also make the relevant filings with HMRC. This includes UK property disposals by individuals, trustees, companies and partnerships.

In addition, where UK properties are rented out by non-resident landlords, we can assist with the annual compliance in respect of the rental income received by a non-residents (individuals, trustees, companies and partnerships).

Where commercial properties are let and the property has been Opted to Tax, we can assist with the company’s quarterly VAT returns.

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ATED for non-residents on UK residential property

As well as preparing the annual returns required by HMRC, we can also look at each individual case to review any reliefs that are being claimed, or could be claimed, to ensure our clients are adhering to the legislation and benefitting from any tax savings where possible. We have an in-depth knowledge of the ATED legislation and the common (and not so common) misconceptions and errors.

We can also provide de-enveloping advice to companies and trustees, along with advice on other property related matters such as non-resident capital gains tax and corporation tax.

Fund taxation and reporting obligations

We assist offshore funds with meeting their taxation reporting obligations including offshore reporting funds. Offshore reporting funds are funds that are specifically registered with HMRC and allow their UK resident shareholders to enjoy certain tax benefits over “non-reporting” fund holdings. We are able to advise on the application of the regime, register funds with HMRC, complete the annual reporting obligations and assist impacted shareholders of the fund. We are also able to assist property funds with their income tax and capital gains tax filings including advising on elections available to mitigate double-taxation exposure on investors.

Pensions including QROPS/IPPs/EBTs/EFRBS –

We provide UK and Guernsey tax advice to members of pension schemes and the schemes themselves. This includes tax consequences to the members and the schemes of transfers, contributions and investments.

Advising on real estate holding structures

The use of Guernsey real estate holding structures for acquiring and holding residential and commercial property in the UK and elsewhere can provide significant taxation benefits. LTS Tax advises on the use of all manner of Guernsey property holding vehicles including, inter alia, Companies, Trusts, Unit Trusts, Limited Partnerships and Funds, as appropriate.

Why Guernsey?

Guernsey provides a high standard of living, with a good education system, stable government, good infrastructure and a convenient location close to the UK and Europe.

 

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Latest factsheets

Use the links below to download our latest factsheets.