Choosing an Asset Holding VehicleChoosing an Asset Holding Vehicle

2323rdrd Annual AnnualTranscontinental Trusts 2008Transcontinental Trusts 2008

Supplemental Material

2

Cellular Approach

Tax Planning

• Avoids CFC or “close company” and tax attribution

• General UK Rule, five or few people must control more than 50% of the company/vehicle, such that multiple cells avoids this

• Compare and contrast with mutual/unit trust (open ended investment company)

3

Private Trust Companies (old style)

Private Trust Company

Professional Directors/Trust Company [S70 liability acceptable]

Advisory Panel Family/Advisers [S70 liability not acceptable]

TrustTrust Trust

CharityGuarantee Company

Guarantee

Company

Family/Adviser

Family/Adviser

4

Private Trust Companies (new style)

Private Trust CompanyFamily/Advisors on board

Professional management

TrustTrust Trust

Purpose Trust or

Guarantee Companies

5

Mobile International Pension Plans

Who and Why?

• Expatriates/tax-free build up

• UK/EU top-up schemes (no tax relief)

• “International” companies (mobile executives)

• Corporate schemes

• Satellite schemes

• Key executives

• Future spin off

6

Mobile International Pension Plans

Contributor

RAT =Trust/Insurance Contract

Beneficiaries (eg contributor and family

Guernsey resident professional Trust/Insurer

Assets

Cash Investments

Property Loans Other

Guernsey Personal Pension Schemes (Retirement Annuity Trust Scheme) (Section 40(ee)) (PCC/ICC)

7

Captive Insurance

Independent Insurance CoPCC

Parent/ Customer

RentedCell “A”

RentedCell “B”

RentedCell “C”

Etc

Rented/Owned100%

Premium

Insure main corporate

risks

Insure excess

Investment Pool

Rent a Captive (PCC/ICC)

8

Partnership

• Joint and general liability variations Scotland and England

• Traditional professional businesses

• LLP’s are not preferred (restriction of personal liability)

9

Limited Partnership

General liability rests with GP

Investors liability is limited

For tax is transparent

General Partner

Manager

Investor

10

Family Limited Partnership

GP = Parent with control rights

LP = Child with restricted and protected interests

GP

LP

Family Business

11

Family Limited Partnership (Cont’d)

Uses include advantages for:

• Limiting control/transfer rights

• Succession planning

• Estate protection (transferring value of company to next generation at a discount)

• LP creditor protection

12

Contact Details and Reference Sites

Speaker’s Details

Paul Christopher Michael BetleyPartner Managing DirectorOzannes Trust Corporation ofPO Box 186 the Channel Islands Ltd1 Le Marchant Street PO Box 665St Peter Port Roseneath, The GrangeGuernsey St Peter Port, GuernseyGY1 4HP GY1 3SJ

Website: www.ozannes.com Website: www.trustcorpci.com

13

Contact Details and Reference Sites

Other useful Guernsey websites

Organisation/Body Website

Channel Islands Stock Exchange www.cisx.com

Guernsey Bar www.guernseybar.com

Guernsey Directory www.allaboutguernsey.com

Guernsey Financial Services Commission www.gfsc.gg

Guernsey Society of Chartered and

Certified Accountants www.gscca.guernseyci.com

Income Tax Office www.tax.gov.gg

ITPA www.itpa.org

States of Guernsey (Government site) www.gov.gg

The Law Officers www.gov.gg/law