Tax avoidance measures hit Crown Dependencies

  • About £600 billion in assets under management is held in the Crown Dependencies of Jersey, Guernsey and Isle of Man.    
  • At least £305 billion is held in banking deposits in these three islands.
  • Guernsey and Isle of Man, the two Overseas Territories to have recently signed up to FATCA-styled tax disclosure treaties with the UK, hold over £152 billion in banking assets.
  • Jersey, which today pledged to sign a similar agreement, is the largest crown dependency offering reduced tax rates.
  • There are over 1.7 million non-doms currently living in the UK.
  • The global private banking industry has AuM of $19.3 trillion. Offshore centers account for 42% or $8.3 trillion of this total.

According to WealthInsight’s analyst, Oliver Williams: “The 2013 budget sends a clear signal to the Crown Dependencies that their days of tax freedom are limited. Today, all three islands have pledged to agreements allowing greater tax transparency and HMRC have promised to recover £1 billion over the next five years. This will affect many of the 1.7 million non-doms living in the UK and even more HNWIs who hold assets in the Dependencies”.