Economic Substance For Jersey Funds

Jersey's economic substance regime has been in existence for nearly three years now. On the one hand its scope has recently been expanded to include partnerships as well as self-managed corporate funds; but on the other hand certain exemptions apply so that partnerships (and in many cases companies) acting as fund vehicles are out of scope. The purpose of this note is to provide some information about the impact of the economic substance regime on Jersey's funds industry.

The economic substance regime is captured in two principle pieces of legislation, the Taxation (Companies – Economic Substance) (Jersey) Law 2019 (which came into force with effect from 1 January 2019 and was amended on 4 June 2021 to bring self-managed corporate funds into scope) (the "Companies Substance Law"), and the Taxation (Partnerships – Economic Substance) (Jersey) Law 2021 (which came into mforce with effect from 30 June 2021, bringing partnerships into scope) (the "Partnerships