Guernsey

Location

Guernsey is the second largest of the Channel Islands, and is situated in the English Channel closer to France than to the United Kingdom. As a result of its position the Island benefits from a milder climate than the United Kingdom. There are frequent air and sea services to and from the United Kingdom and other destinations in Europe. The Bailiwick of Guernsey includes the main island of Guernsey plus Alderney and Sark and other smaller islands. Despite its proximity to France the local currency is sterling, English is the official language and the time zone is that of the United Kingdom.

Constitution

The Island has a unique relationship with both the United Kingdom and the European Union. The Island is a self-governing dependency of the British Crown with its own elected States of Deliberation. With the exception of foreign relations and defence, both of which are administered by the United Kingdom, the Island legislates on all domestic political and fiscal matters. The absence of a political party system provides political and fiscal stability. Guernsey is presently outside the control of the European Union for matters such as EU tax harmonisation.

Banking

All of the main United Kingdom clearing banks have representation in the Island together with representation of many other banks from around the world. Interest paid by banks licensed in the Island is not subject to any withholding tax.

Industry

The main industry of the Island is finance supported by other industries such as tourism, horticulture, agriculture and light industry. The Island has built up a reputation as a stable and professional international finance centre. This reputation has been earned on the back of the political stability mentioned above, high standards of expertise, the Islands' proximity to other European finance centres and the taxation structures in force for both local and offshore enterprises.

Taxation

Except in the case of certain Guernsey real property transactions the Island has a relatively straightforward taxation system and does not have any form of value added tax, capital gains tax, gift or wealth taxes, estate duty or capital transfer tax. Similarly there is no system of stamp duty payable on the transfer of assets.

Exchange Control

There is no exchange control and currencies are freely transferable.