Tax Update, 14 May 2007

Reminder that 19 May is the last date for 2006/07 forms P14, or substitutes, and P35 (Employers’ Annual Return) to reach HMRC. Penalties are chargeable on any Return received after this date.

2 Guernsey Trusts

The update of Guernsey’s legislative framework for trusts, (the Trusts (Guernsey) Law, 1989 as amended) has now reached its final consultation stage and a draft "projet de loi" entitled the Trusts (Guernsey) Law, 2007 has now been produced.

In brief the draft law:

• permits the establishment of trusts for non-charitable purposes. The legislation makes it clear that trusts to hold property or to exercise functions without conferring a benefit on any person are valid;