Jersey Incorporated Holding Structures For UK Acquisitions

INTRODUCTION

There has been an increasing level of interest in using Jersey corporate holding structures for UK public takeover offers and private acquisitions. The principal advantage of using a Jersey holding company is the flexibility of Jersey company law in relation to returns to investors - whether by means of dividend, redemption of share capital or share buy-back. Although generally more flexible, Jersey company law is modelled on UK company law principles.

TAX REGIME

The States of Jersey has passed legislation to introduce a general zero rate of income tax with effect from January 2009. This zero rate of income tax will apply to virtually all companies and, unless it is managed and controlled in a jurisdiction outside Jersey (see below), any company incorporated after 3 June 2008 shall be subject to a zero rate.