Clive Coleman comments in Spear’s on the reputational implications of billionaire family’s decision to onshore trusts

Our Senior Partner Clive Coleman comments in Spear’s Magazine on the reputational implications of a British billionaire family’s decision to move multiple trusts from Guernsey to the UK for ethical, social and moral reasons.

The decision, revealed in a recent judgment from Guernsey’s Royal Court, will bring three substantial family trusts within the UK tax system. According to actuarial calculations cited in the judgment, the trusts could be worth £82 billion by 2134 if left offshore, but could be depleted of assets by the same date if onshored.

Speaking to Spear’s, Clive explains that the decision challenges widespread public perceptions of how ultra high net worth individuals and families manage their wealth.

“There’s certainly reputational capital to be gained from an ultra-wealthy individual or family moving assets from a low-tax regime to a higher-tax regime because they feel it is morally the right thing to do,” Clive says. “They want to play their full part in the social contract.”

Clive adds that the move stands out precisely because it runs counter to the common narrative surrounding the super-rich and offshore wealth.

“It goes so against the public perception that the super-rich are experts at moving their assets to low-tax or even no-tax regimes,” he says. “Bucking that trend comes with a lot of reputational capital, even if it means the tax take on those assets will be far higher.”

However, Clive notes that not every family would seek to publicise such a decision. For some UHNW families, discretion remains paramount and the decision may simply be “a matter of conscience”.

Read the full article in Spear’s Magazine here.