TRUST PROFESSIONAL RELOCATING TO THE UK? HERE’S WHAT TO EXPECT

Are you a trust professional considering a move to the UK? The trust landscape here offers a unique blend of opportunities and challenges, particularly for those accustomed to offshore jurisdictions.

But is the UK trust sector the right environment for you?

In this article, William Hurlock, Associate Director at Victus Search, outlines key aspects of the UK trust environment, compares it with offshore structures, and highlights what you should know before deciding to make a move.

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UNDERSTANDING THE STRUCTURE OF THE UK TRUST SECTOR

Unlike some offshore jurisdictions where dedicated trust companies are common, the UK trust sector is largely integrated within legal and accounting firms. You’ll find most trust work conducted within specialist departments of these firms, focusing on areas like Trust and Estate Planning, Trust and Estate Tax, or related legal services. This structure influences the type of roles available and the career paths within the industry.

WORKING WITHIN A TAX-FOCUSED ENVIRONMENT

The UK trust sector is distinctly more tax-focused than many offshore jurisdictions. While offshore trusts often prioritise asset protection and privacy, UK trusts are heavily influenced by tax legislation. This emphasis shapes the skills demanded within the industry. Accountancy qualifications, particularly the Chartered Tax Adviser (CTA) designation, are highly valued and often essential for a trust professional seeking roles in the UK. This contrasts with some offshore locations where legal backgrounds might be more prevalent.

ONSHORE VS OFFSHORE TRUSTS: KEY DIFFERENCES

Understanding the fundamental differences between onshore and offshore trusts — both commonly encountered in the UK sector — is crucial for any trust professional looking to make a career move.

Onshore trusts: Established within the UK legal framework, onshore trusts are subject to UK tax laws and regulations. They are commonly used for estate planning, mitigating inheritance tax, and managing family wealth within the confines of domestic law. Transparency and compliance are paramount.

Offshore trusts: Often set up in jurisdictions such as the Cayman Islands, Jersey, or Guernsey, offshore trusts often offer greater flexibility regarding asset protection and tax planning — and can leverage more favourable legal and tax regimes than those found in the settlor’s home country. However, increasing international tax transparency initiatives are impacting the traditional advantages of offshore structures in some cases.

NAVIGATING JURISDICTIONAL DIFFERENCES AS A TRUST PROFESSIONAL

As a trust professional relocating to the UK, you’ll need to adapt your expertise to the specific requirements of the local regulatory environment. Experience in offshore jurisdictions can be valuable, but a strong understanding of UK tax law is essential.

Differing regulatory environments

The regulatory landscapes of onshore and offshore jurisdictions differ significantly. Offshore locations often offer greater privacy and asset protection, while the UK emphasises transparency and tax compliance. Professionals must be adept at navigating these distinct regulatory frameworks.

Jurisdiction-specific expertise

The UK trust industry values experience in specific jurisdictions, particularly those with close ties to the UK, such as the Channel Islands. Knowledge of the legal and regulatory frameworks of these locations can be highly advantageous.

Taxation of trusts across borders

With increasing globalisation, cross-border taxation is a growing area of complexity. Professionals with expertise in double taxation treaties, international reporting requirements, and wealth protection strategies are therefore in high demand.

FINDING YOUR PLACE IN THE UK TRUST MARKET

The UK offers a dynamic and challenging environment for trust professionals. Adapting to the tax-focused nature of the industry and understanding the nuances of UK trust law are important, but access to the right networks is invaluable.

At Victus Search, our consultants have specific expertise in the trust services sector — both here in the UK and internationally. We can provide tailored guidance and connect you with the right opportunities to leverage your expertise and thrive in the UK market. Contact us today to learn more about how we can support your move.