Guernsey Property Unit Trusts: Uses And Benefits

What is a Guernsey Property Unit Trust ("GPUT")?

A Guernsey Property Unit Trust ("GPUT") is a form of Guernsey trust commonly used when structuring UK real estate acquisitions.

The assets of a GPUT are held in the name of the trustee on behalf of the unitholders (beneficiaries) who will hold units in the GPUT corresponding to their interest in the underlying asset. The legal ownership of the asset therefore rests with the trustee whilst the unitholders have the beneficial interest in the trusts' assets.

The trustee will typically appoint a Property Manager to manage the real estate held.

Uses and Benefits of a GPUT

Up until 2006 a GPUT could benefit from an exemption to UK Stamp Duty Tax ("SDLT"). Whilst that exemption no longer exists, a GPUT is still an attractive investment vehicle with the following benefits: