Economic Substance

Economic Substance legislation has been introduced in the Crown Dependencies and British Overseas Territories.

The legislation is designed to improve tax transparency and ensure that companies resident in Bermuda, British Virgin Islands, Cayman, Guernsey, Isle of Man and Jersey are not being used to avoid tax in other jurisdictions. The legislation came into effect on 1 January 2019 with reporting to tax authorities due from January 2020.

We are waiting for the comprehensive guidance notes from each jurisdiction. The economic substance requirements will vary depending on the actual activity of the company.

In general economic substance will include:

  • that the company is directed and managed in the jurisdiction
  • that the company conducts core income-generating activity in the jurisdiction
  • and has adequate people, premises and expenditure in the jurisdiction.


Not every client will be impacted by this change and we expect that most will meet the substance requirements or will not be caught by the new rules. We are currently working to establish the exact requirements for all our clients and our expert teams will be in touch shortly should this be relevant to you.

Depositaries and the no-deal Brexit scenario

Papers published recently by HM Treasury and the Financial Conduct Authority (FCA) set out the current state of the UK's planning for a hard Brexit, if the decision is taken to exit without a deal on 29 March 2019. Here, David Price, Depositary Services Manager at Estera Depositary (UK) Limited, explains what depositaries need to know in order to prepare.

Estera Appoints Ethan Levner as Managing Director, Guernsey

Estera announced today that Ethan Levner has been appointed as Managing Director in Guernsey in addition to his responsibilities as Group Head of Corporate Development, encompassing M&A and group strategy.

Jersey's private wealth sector enjoys a year of strong growth

Jersey Evening Post, Business Panel asked, What does the future hold for private wealth services in Jersey?