However, if a beneficiary is a resident of Jersey or the trust is in receipt of Jersey income other than bank interest, the trustee will be liable to Jersey for income tax. The principal attraction of these trusts is that they do not allow an individual to divorce himself entirely from the ownership of assets while entrusting professional trustees to apply those assets in a manner he approves. This benefit ensures that the ultimate owner of the assets has some discretion over his trust investments. There are also advantages associated with establishing a holding company in the islands. Among these are exemption from income taxes, capital gains taxes, wealth taxes, estate duties, and capital transfer taxes.
Companies registered in the Channel Islands are subject to local company law.
They must be formed with limited liability. Registering a company in the Islands, while maintaining administration outside the Islands, confers the advantage of low company duty of 500 per year in lieu of income tax. This tax can be offset against the companies' liability for local income tax. Externally controlled companies are free from withholding tax on dividends. ABN AMRO Bank Jersey - The network bank in Jersey.