Last Updated August 13, 2019

Law and Practice

Contributed By Mourant

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Mourant is a leading offshore law firm with expertise in Cayman Islands, British Virgin Islands, Jersey and Guernsey law. The firm's clients include many of the world's leading financial institutions, corporations, public organisations, private equity houses and investment funds, as well as ultra-high net worth individuals and family offices. Mourant Ozannes delivers partner-led advice on complex, multi-jurisdictional and often high-profile matters for clients looking for depth of expertise and a range of resources across Asia, Europe, Latin America, the Middle East and North America. The firm has 60 partners and over 215 lawyers worldwide, advising 90% of the world’s top 50 banks and a large number of FTSE 100 and FTSE 250 companies. The firm routinely works in partnership with the most prestigious international legal and accountancy firms. Mourant Ozannes' International Trusts & Private Client practice brings together contentious and non-contentious work in a genuine 'one-firm' approach, enabling it to advise seamlessly on the appropriate jurisdiction in which to establish and administer private wealth structures and to work together without jurisdictional boundaries. The team also advises on trust and foundation law, including trusts holding private wealth as well as those used in the commercial sphere (eg, pensions and EBTs), and complex trust disputes.

Under the Income Tax (Jersey) Law, 1961, the income of a charity will be exempt from Jersey income tax as long as the charity is formally registered as a charity in accordance with the provisions of the Charities (Jersey) Law 2014.

There is also tax relief for donors to Jersey charities to the extent they are liable to Jersey income tax.

The Jersey income tax position in respect of charities therefore encourages both the establishment of and donations to charities.

The most common structures used for charities in Jersey are trusts, companies limited by guarantee and foundations.

Charitable-purpose trusts can be set up for any charitable purpose and can be established for an unlimited duration. Whilst the trustees may change over time, the trust will continue to exist indefinitely (and until terminated). Trusts, however, are not recognised in all jurisdictions and have no separate legal personality from their trustees.

Companies limited by guarantee are popular because they provide a separate legal entity which is a well-known, registered structure which third parties (such as lenders) are generally comfortable dealing with. A company also provides continuation as the company will not cease to exist unless wound up or struck off.

Like a company, a foundation has separate legal personality from the founder or members of the council and can continue indefinitely. A foundation is ownerless and has no shareholders. Although foundations are registered, there is limited information available publicly. Clients in civil-law jurisdictions are particularly comfortable with foundations, as they have been used in civil-law jurisdictions for philanthropic purposes for centuries.

Mourant

22 Grenville Street
St Helier
Jersey
JE4 8PX
Channel Islands

+44 1534 676 000

+44 1534 676 333

www.mourant.com
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Authors



Mourant is a leading offshore law firm with expertise in Cayman Islands, British Virgin Islands, Jersey and Guernsey law. The firm's clients include many of the world's leading financial institutions, corporations, public organisations, private equity houses and investment funds, as well as ultra-high net worth individuals and family offices. Mourant Ozannes delivers partner-led advice on complex, multi-jurisdictional and often high-profile matters for clients looking for depth of expertise and a range of resources across Asia, Europe, Latin America, the Middle East and North America. The firm has 60 partners and over 215 lawyers worldwide, advising 90% of the world’s top 50 banks and a large number of FTSE 100 and FTSE 250 companies. The firm routinely works in partnership with the most prestigious international legal and accountancy firms. Mourant Ozannes' International Trusts & Private Client practice brings together contentious and non-contentious work in a genuine 'one-firm' approach, enabling it to advise seamlessly on the appropriate jurisdiction in which to establish and administer private wealth structures and to work together without jurisdictional boundaries. The team also advises on trust and foundation law, including trusts holding private wealth as well as those used in the commercial sphere (eg, pensions and EBTs), and complex trust disputes.

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