Jersey is not part of the United Kingdom
The constitutional relationship with the United Kingdom is the product of 800 years (dating since 1204) of custom and usage and is not affected by changes of government in the United Kingdom. The United Kingdom Parliament has no power to legislate for Jersey unless the Island Government so chooses.
Domestic and Foreign Affairs
The Island's Government (the States of Jersey) is responsible for all its domestic affairs including regulation of its industries and taxation. The Island's Government has chosen to be represented by the United Kingdom Government in respect of international relations.
Jersey is not part of the European Union
The Island has a special relationship with the EC negotiated by the Island's Government when the Treaty of Accession was signed; this relationship is embodied in Protocol 3 of that Treaty. The Island is not subject to EU directives or regulations relating to:
Harmonisation of Taxation
Exchange of Information
Jersey is in monetary union with the United Kingdom with the GBP being the operating currency. There are no exchange controls applied to the movement of funds into or out of the Island.
The Jersey standard rate of income and corporate tax is 20%; this rate has not changed for over sixty years. Trusts and Companies for non-residents are exempt from income tax on overseas investments, collective investment fund income and bank deposit interest. There is no Capital Gains Tax, no Estate Tax, no Inheritance Tax and no VAT or Sales Tax.
Trusts (Jersey) Law 1984
The above legislation comprehensively covers the rights, duties and responsibilities of the trustee, the settlor(s) and beneficiaries of a any trust created within the Island.
Financial Services (Jersey) Law 1998
This legislation requires Trust Companies to be registered and requires high standards of internal checks and procedures with a view to protecting clients and the reputation of Jersey as an administrative "Centre of Excellence".
For further details please visit Jersey Financial Services Commission website.