Jersey Family Limited Partnerships

Jersey Limited Partnership Law provides a modern and comprehensive framework for the establishment and administration of a Family Limited Partnership (FLP) which can be formed to hold a family's business or investments.

In the UK, since March 2006 contributions to a trust carry a 20% inheritance tax (IHT) charge on the added value to the extent it exceeds the settlor's unused nil rate band (currently) £320,000). There are also ten yearly charges on the value held in the trust over and above the nil rate band on every ten year anniversary of its creation, up to the maximum value of 6%. These charges may not apply in the case of someone who is not domiciled in the UK providing they are contributing assets situated outside the UK and in those situations an offshore trust may still be a useful holding structure.