Property Unit Trusts

Prepared by the Real Estate Investment Funds Team

As a politically stable and tax neutral jurisdiction with over 40 years accumulated experience as an international finance centre, Jersey has gained a strong reputation as a prime location in which to establish investment structures of all descriptions including a large number of property funds.

Property unit trusts have recently become very popular as a result of changes in the UK legislation relating to stamp duty land tax ("SDLT"). Most transactions involving the transfer of an interest in land situated in the UK attract a charge to SDLT at a rate of up to 4% of the value of the property. On the introduction of SDLT, transfers of UK situated land to and from partnerships were expressly excluded from this tax.