Tax 2020

Tax 2020 – What you need to know

The tax landscape is in a period of hyper change. At Grant Thornton Channel Islands, we are constantly looking for ways to support our clients and service providers so they remain ahead of the game with the ever changing tax legislation and practice.

Our team of 23 tax professionals, led by four Directors across both islands ensure we have the experience and expertise necessary to advise on all areas of Channel Islands, UK and international taxation.

To support you in staying informed of the latest changes in tax legislation and practice, we’ve illustrated a snapshot of the key areas where we currently provide support.

Should you wish to discuss any of these areas in more detail, please get in touch with the relevant expert, whose contact details can be located in the footer of the relevant article.

What’s trending?

The move from UK Non-Resident Landlord Tax to UK Corporation Tax - click to find out more
This change in tax legislation is fraught with complexity, but also brings opportunity to ensure that the effective UK tax rate is managed as well as possible


The Jersey Corporate Tax Returns for 2019 - click to find out more
The requirements for 2019 Jersey Corporate Tax Returns are more detailed than ever before. With the deadline of 31 December 2020 fast approaching, it’s vital you understand what these changes mean and how they will impact your day to day.


Common Reporting Standards (CRS) Audits - click to find out more
CRS Audits are beginning to take place in Jersey and Guernsey. Are you a financial institution? If so, you could benefit from a review/health check of your internal reporting processes and procedures for CRS and/or FATCA.


The Mandatory Disclosure Regime and DAC6 - click to find out more
These new regimes are driven by the OECD and EU and will have a significant impact upon Channel Islands intermediaries and service providers. Those that are not fully up to speed on the internal processes and procedures to identify when reporting is due are at risk of facing large penalties.


Country by Country Reporting requirements - click to find out more
Country by Country reporting requirements exist for any group of entities where the consolidated worldwide turnover in a financial year exceeds €750million. For many Jersey and Guernsey entities, the filing deadline will be 31 December 2020 and significant penalties will be incurred for those who fail to meet the deadline.

Other tax matters of note

Annual Investment Allowance
In the UK, the Annual Investment Allowance (the amount of qualifying capital expenditure which secures a 100% write down for UK Corporate Tax) is set at £1million until 31 December 2020. After this date, it will drop to £200,000. It may therefore be prudent to consider pulling forward capex for UK tax paying companies pre 31 December 2020.


Stamp Duty Land Tax
From April 2021 in the UK, Stamp Duty Land Tax on residential property will have a 2% surcharge added for most non-UK resident buyers.  Further, from then, the existing ‘holiday’ on certain rates will end. All investors looking to enhance their UK residential property portfolio may be advised to accelerate their acquisitions to take advantage of the lower rates.


No UK Budget Announcement
There will be no UK budget announcement prior to the end of 2020. This means we should not expect to see the rumoured increases to the UKCT rate, or any changes to the UK’s Capital Gains Tax or Inheritance Tax regime. These changes could have impacted non-resident investors until at least April 2021.

For more information please contact

Jersey

Guernsey

John Shenton | Director
T: 01534 885 866
E: john.shenton@gt-ci.com
Neil Hoolahan | Director
T: 01481 753 419
E: neil.hoolahan@gt-ci.com
Lisa Guy | Director
T: 01534 885 735
E: lisa.guy@gt-ci.com
Mark Colver | Director
T: 01481 753 448
E: mark.colver@gt-ci.com
Andy Shaw | Senior Manager
T: 01534 885 704
E: andy.shaw@gt-ci.com
Liz Hawke | Senior Manager
T: 01481 753 447
E: liz.hawke@gt-ci.com
James Tinnelly | Senior Manager
T: 01534 885 780
E: james.tinnelly@gt-ci.com
Gary Maclachlan | Manager
T: 01481 753 402
E: gary.maclachlan@gt-ci.com