Guernsey Hotels | Guernsey information In respect of the bullet points in paragraph 90 the option

La Pointe Farm, Rue du Lorier, St Pierre du Bois, Guernsey. GY7 9JU
Tel 07781 434752 Fax 01481 268217 Email res@lelorier.com

The one and only establishment in Guernsey offering nightly terms on five star accommodation
Why settle for a hotel room when you can have a whole suite for your stay in Guernsey

	Hotel Apartments 'Le Lorier' & 'La Hougette' have been awarded the coveted 'five star' grade which is a guarantee of 1st class accommodation, and we are the only establishment in Guernsey that will offer five star accommodation on a nightly basis
Apartment 'Le Lorier' is on the first floor, please click here for a full description Apartment 'La Hougette' is on the ground floor, please click here for a full description	The hotel apartments are situated in the countryside parish of St Pierre du Bois, offering pleasant walks through country lanes that surround us, yet within five minutes drive you will find restaurants, bars, cinema etc. etc. And only twenty minutes drive to St Peter Port, the islands main town and financial district.
Our aim is to offer the visiting business executive an alternative to the normal hotel room/suite, more a home from home, with all the facilities one would be used too - Guernsey Hotels

91. In respect of the bullet points in paragraph 90 the option is available of excluding any income or proceeds, as applicable, from undertakings for collective investments established in the Island where the investment and debt claims of the type referred to in paragraph 78 (a) held by such entities, directly or indirectly, does not exceed 15% of their assets. As already stated in paragraph 81 this minimum option threshold will be taken advantage of.

92. The Agreements state that –
• when a paying agent has no information concerning the proportion of the income which derives from interest payments, the total amount of the income shall be considered an interest payment;
• when a paying agent has no information concerning the percentage of the assets invested in debt claims or shares or units as defined above, that percentage shall be considered to be above 40%. Where the paying agent cannot determine the amount of income realised by the beneficial owner, the income shall be deemed to correspond to the proceeds of the sale, refund or redemption of the shares or units.

93. However, where insufficient information is available to enable judgement to be exercised, it is to be expected that the paying agent in exercising that judgement will give the greater weight to the interests of the beneficial owner. Thus, if a paying agent has made proper enquiries and there remains an element of doubt as to whether the retention tax should be applied, it is reasonable to presume that a liability does not arise.

94. The Island Authorities will not exercise the option of requiring paying agents to annualise interest and treating such annualised interest as an interest payment (even if no sale, redemption or refund occurs during that period).

95. In determining whether a funds investment in debt claims exceeds 15%, or 40% of its total assets, attention should be focused on the fund’s investment policy as set down in its rules or constitution unless the actual composition of the fund’s total assets is less than 15% or 40%, measured at the time the last debt claim investment was acquired. Cash awaiting investment should be ignored for these purposes.

96. Where a fund operates equalisation arrangements, the capital element paid on the first distribution following a subscription will not be treated as an interest payment, subject to the discretion of the fund management or the paying agent.

97. In the case of an umbrella fund the 15% and 40% percentages referred to above can be applied to either the fund as a whole or to its constituent sub-funds, at the discretion of the paying agent or the fund, as long as this is applied consistently year on year.

98. In practice it is probable that for some collective investment undertakings there will be occasions when the percentages referred to above fluctuate one side or the other of the 15% and 40% thresholds. This may be dealt with by focusing on what can be considered the normal course of events. Thus if at one point in time, the percentages suggest the application of the retention tax but this is not the norm, and the investment policy set down in the fund’s rules or constitution is such that the retention tax would not ordinarily apply, it will be acceptable for the paying agent to decide that the retention tax should not be applied. A similar approach applies to the sale of units of a collective investment scheme.

99. In computing the 15% and 40% thresholds, provision can also be made for set off of borrowing against debt claims. Bonds and other negotiable debt securities falling within paragraphs 73-76 which are not regarded as debt claims also can be excluded from the assets of collective investment schemes for the purposes of calculating the amount of debt securities owned by that fund (for the purpose of the 15% and 40% threshold).

100. Some general points regarding Funds
• it will be for the paying agent to determine whether or not interest purchased should be deducted but this should be done on a consistent basis;
• it will be for the paying agent to determine the taxable element on redemption but this should be done on a consistent basis;
• interest does not include discounts arising in the secondary markets as opposed to original issue discount;
• limited partnerships are not included in the definition of undertakings for collective investment;
• the return on capital introduced by way of loan is not regarded as interest.

101. This guidance does not cover every aspect of the arrangements being entered into through the Agreements. In some cases this is because the Agreements are considered to be sufficiently clear in themselves. In other cases it is because it is considered any issues arising would need to be dealt with on a case-by-case basis.

102. Any queries concerning these guidance notes should be directed to the Commerce and Employment Department, States of Guernsey (Telephone number: 233588 Fax: 235015 or e-mail eustd @commerce.gov.gg)

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