1. Pan-Channel Islands developments
1.1 Economic substance regime now extended to partnerships
As of 1 July 2021, the economic substance legislation in Jersey
and Guernsey will apply to newly-formed partnerships. For
partnerships existing prior to this change, there will be a
six-month transition period to 1 January 2022.
The extension of the rules to partnerships is part of the
Channel Islands' ongoing political commitment to the EU Code of
Conduct Group.
The substance requirements apply to resident partnerships
(including incorporated limited partnerships, limited liability
partnerships, limited partnerships, separate limited partnerships,
Jersey-resident foreign limited partnerships, Guernsey-resident
foreign limited partnerships, and general partnerships) that carry
on certain specified geographically mobile activities, including
fund management business, finance and leasing business and holding
partnership business.
