Jersey’s Value To Britain: Banking Beyond The EU

There has been a long held presumption by some that most of Jersey's banking business comes from the UK and is in effect round tripping designed simply to dodge tax.

This has always been a most unlikely scenario given the dominance of international currency deposits held in the Jersey banking system. Recent evidence from the newly launched  Capital Economics report debunks this myth completely, demonstrating that detractor allegations were always motivated by exaggeration and raw speculation.

The following slide shows that the majority of Jersey deposits originate from beyond the EU.

The amount coming from the UK is clearly quite small and most of it from institutions or non-doms, with very little attributed to individuals due to pay UK tax on their deposits. In any event, the UK will get information on all classes of investor under the new FATCA agreement.