Guernsey Hotels | Guernsey information The sale or redemption proceeds

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

71. The sale or redemption proceeds of units in a collective investment fund will not be an interest payment subject to retention tax if the fund has invested 40% or less of its assets indebt claims. This will change from 1st January 2011 to 25% or less.

72. Examples of instruments which are not debt claims include –
• ordinary or preference shares in companies;
• insurance policies;
• shares in open ended investment companies and units in unit trusts – but there are separate rules which apply to interest payments arising from investments in collective investment schemes which mean that these are reportable in some circumstances (see paragraphs 84-99);
• debts which do not arise from a transaction for the lending of money (for instance where there is a late payment and compensation interest is paid);
• certain debt securities which already existed before 1st March 2001 – "grand-fathered bonds" (see paragraphs 73-76);
• partnership capital;
• early repayment of loans. "Grand-fathered Bonds"

73. Certain negotiable debt securities are not treated as money debts if they meet certain conditions, for the duration of a transitional period which will end no later than 31 December 2010. These securities ("grand-fathered bonds") do not then count as money debts for all purposes of the Agreements: interest, premiums and discounts derived from these bonds are not savings income; and investment in these bonds does not count when deciding whether the thresholds which determine whether income from certain collective investment funds is savings income have been passed.

74. A security will be a grand-fathered bond if:-
• it was first issued before 1st March 2001 or the prospectus was first approved by the appropriate regulatory authority before that date, and
• no further issue was made on or after 1st March 2002.

75. If the bond is a government bond and a further issue is made on or after 1st March 2002, the whole of the issue (whether made before, on or after 1st March 2002) is not a grand-fathered bond. The whole issue of the bond is then treated as a money debt. On 1st March 2002 the UK Treasury issued additional gilt-edged stock in order to ensure that the transitional protection will not apply to any gilt-edged stocks then in issue. All gilt-edged stock will therefore be treated as money debts and no gilt edged security will be a grand-fathered bond.

76. If the bond is issued by another type of issuer (e.g. a commercial company) and a further issue is made on or after 1st March 2002, only the part of the issue made on or after 1st March 2002 is not a grand-fathered bond. This part of the bond issue is treated as a money debt; the rest of the issue (made before 1st March 2002) is not a money debt. A paying agent may not always be able to distinguish between a pre 1st March 2001 and a post 1st March 2002 issue. In such cases, if the original 1st March 2001 issue has been tapped the paying agent may presume that the bond can be treated as a pre 1st March 2001 issue. What savings income is covered by the requirements?

77. There are four main categories of savings income that will be treated as interest payments to which the retention tax, or the alternative reporting of information (see para 37), will apply.
Broadly these are –
• interest paid out on debt claims or credited to accounts;
• interest rolled up and paid out when a debt claim is repaid or sold;
• distributions made by unit trusts and other collective investment funds which have the requisite proportion of their investments in debt claims (see also paragraph 70);
• accumulated income relating to units of a collective investment fund which has invested over 40% of its assets in debt claims when the units are redeemed or sold (see also paragraph 71).
What amount of savings income is subject to retention tax?

78. The retention tax should be levied as follows –
(a) interest payments made or credited to an account, relating to debt claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and, in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures;
– in this case the retention tax will be levied on the amount of the interest payment made or credited; NB – penalty charges for late payment shall not be regarded as interest payments.
(b) interest accrued or capitalised at the sale, refund or redemption of the debt claims referred to in (a) above – in this case the retention tax should be levied on the amount of interest or income referred to in this sub-paragraph or by a levy of equivalent effect to be borne by the recipient on the full amount of the proceeds of the sale, redemption or refund;
(c) income deriving from interest payments directly, distributed by undertakings for collective investment where those undertakings are within scope (note: the position regarding these undertakings is dealt with more fully in paragraphs 84-100). – the retention tax should be levied on the amount of income referred to in this sub-paragraph (but see paragraph 81);
(d) income realised upon the sale, refund or redemption of shares or units in undertakings for collective investment, where those undertakings are within scope, if they invest directly or indirectly, via other undertakings for collective investment more than 40% of the assets in debt claims as referred to in (a) above – in this case the retention tax would be levied either on the amount of interest or income referred to in this subparagraph or the full amount of the proceeds from the sale, redemption or refund (but see paragraph 81).

79. From 1st January 2011 the percentage referred to in subparagraph 78(d) shall be 25%.

80. For the purposes of sub-paragraphs (a), (b) and (d) of paragraph 78 the retention tax shall be deducted on a pro rata basis to the period during which the beneficial owner held the debt claim. If the paying agent is unable to determine the period of holding on the basis of the information made available to him, the paying agent shall treat the beneficial owner as having been in possession of the debt claim for the entire period of its existence unless the latter provides evidence of the date of the acquisition.

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