Supporting US Investment – The Jersey Connection

US-UK relations were boosted recently by the prospect of significant amounts of tech-related capital being invested into the UK, following a state visit by US President Trump to the UK.

The visit in September notably featured an announcement relating to an agreement – the ‘Tech Prosperity Deal’ –  signed by Trump and UK Prime Minister Sir Keir Starmer, which would see firms including Microsoft and Google committing to invest billions in the UK. £150 billion to be precise – something that the UK Government hopes will support more than 7,500 jobs.

For the UK, it’s part of a wider plan to deepen economic ties with the US, that aims to see not just investment, but also cooperation in areas such as AI and energy too.

Against this backdrop, the opportunity for me to speak at the UK Government’s recent Family Office Summit in Atlanta was certainly good timing. Because it’s not just institutional or corporate investment flowing increasingly across the Atlantic – private capital, driven by US families looking for new opportunities is very much a feature of the current landscape too.

It’s why at that Summit, I highlighted that the UK has such a depth of scientific and technical prowess, with considerable expertise and knowledge in cutting-edge areas.

What it doesn’t necessarily have, however, is depth of capital. And that is increasingly creating an opportunity for US private investors, with the UK very much open to investment of that sort too. For American families of wealth looking for opportunities to diversify and broaden their reach, the UK should definitely be on their radar.

US investors looking at those opportunities have some critical considerations when it comes to the practicalities of how such investments can be structured, however. Structuring investments in a sensible and robust way is vital. Jersey is a well-trodden path for doing just that – and for good reason.

Perhaps contrary to popular belief, the principal reasons for structuring through Jersey are not tax related. As I emphasized at the Summit, tax neutrality is certainly a feature of Jersey’s framework – where returns on capital are taxed only once, making it highly transparent and straightforward from a tax perspective.

But there are other fundamental factors at play here too.

First, Jersey’s familiarity and long-standing links with the UK. Research shows that Jersey helps to facilitate around £62 billion (c. US$83bn) of capital into the UK on average each year (for more information on this, explore the research undertaken by CEBR on Jersey’s contribution to Global Value Chains). We have a highly collaborative relationship with the UK.

At the same time, there is familiarity from a US standpoint too. Jersey has worked hard to make sure its suite of investment vehicles is recognisable to US investors – the Jersey Limited Liability Company (LLC) is a case in point. It’s very similar to the Delaware LLC, in terms of legal structure, oversight and governance requirements.

Then there is stability. Jersey, as a self-governing jurisdiction, is highly stable from a political, economic and fiscal perspective. This means that, for instance, Jersey is not subject to statutory changes coming from the UK, such as the ‘non-dom’ changes, or indeed from elsewhere. It provides for a certain, reliable and consistent platform, with no sudden changes or shifts in policy or requirements. In a world where instability and volatility prevail, this is very valuable.

Linked to that is predictability. Jersey’s rule of law is very strong, tried and tested. Jersey’s trusts law, for example, is more than 40 years old. It’s the blueprint for trust law in countless other jurisdictions and has been tested regularly in the courts, underlining its integrity and probity. Alongside a regulatory environment that is recognised by international authorities – most recently the EU’s MONEYVAL’s assessment – it means that US investors can plan their investments with certainty and be confident that there won’t be any unforeseen changes impacting their strategies.

Finally, there is flexibility and accessibility. Being a small jurisdiction brings with it significant benefits when it comes to being able to respond to market shifts and investor demands. Just as stability and consistency are important hallmarks of Jersey’s ecosystem, the world in which we live is constantly evolving. Being agile, with an ability to respond pragmatically, can give Jersey an advantage compared to other larger, more cumbersome jurisdictions. In addition, the easy access that investors have to dedicated specialists in Jersey is key. It means families can make changes quickly if there is a need.

The US-UK investment corridor is likely to remain a prominent dynamic in a world of complexity. Excitement around the recent corporate tech investment is one aspect of that – but the picture is more diverse.

Figures from the British Property Federation, for instance, also highlight that US investors are leading the charge in the UK property market, investing a record £13.6 billion in British commercial assets and residential developments in 2024 – more than double the previous year. Private investment in technical and scientific sectors is on the rise too, signalling confidence in the UK.

The role that Jersey plays in ensuring capital is put to work effectively, robustly and quickly will be increasingly important in this context, helping investors in the US to access the attractive opportunities in the UK, securely and with confidence.

Learn more about the role Jersey plays at as gateway between the US and the UK and Europe, or contact Philip to continue the conversation.