Jersey property companies lose tax residence case
16 August 2017HMRC have successfully challenged the offshore residence of Jersey companies holding UK real estate.
In the case of Development Securities, the First Tier Tribunal held that Jersey companies set up to hold UK real estate were resident in the UK for tax purposes. This case serves as a timely reminder of the care that must be taken to ensure the tax benefits of using non-UK entities to hold UK real estate are not lost.