This month’s newsletter contains information regarding Guernsey, United Kingdom, Switzerland, Chile and Australia.

Please let us know if there are any specific subjects that you would like us to cover, by emailing us at info@oreana.com

Europe

🇬🇬 Guernsey

The Committee for Economic Development has put forward a series of beneficial and comprehensive reforms to Guernsey’s trusts legislation.

The proposed changes, which amount to a refinement of the existing regime rather than a complete overhaul, include:

• Allowing courts to extend the trust perpetuity period.
• Increasing clarity around what happens when a trustee dies.
• Providing for the automatic removal from office of a trustee who has lost capacity.
• Allowing a professional regulated trustee to receive reasonable remuneration from trust property.
• Allowing a trustee of one trust to transact with itself in its capacity as trustee of another trust.
• Reducing the minimum required number of trustees from two to one, unless the terms of the trust expressly provide otherwise.
• Extending the right to vary trusts on behalf of minors and others.
• Refining when the termination of a trust under the rule in Saunders v Vautier can be applied.
• Allowing the court to amend a trust for the benefit of the beneficiaries without requiring them to be parties or obtain their consent.

The proposed amendments are scheduled for debate in May 2026.

🇬🇧 United Kingdom

HM Revenue & Customs (HMRC) has published a technical note clarifying how inheritance tax on pensions will apply to deaths occurring from 6 April 2027 onwards.

Key clarifications include:

• How pension scheme administrators must issue estimate and final valuations.
• Executors or personal representatives will be responsible for calculating and reporting the IHT due on pensions.
• Pension schemes can be instructed by executors or personal representatives to withhold up to 50% of death benefits for up to 15 months while IHT matters are resolved.
• Clarification on when pension death benefits from discretionary and non-discretionary schemes are treated as part of the deceased’s estate for IHT purposes.
• Pension death benefits will count towards the estate when assessing the 10% charity threshold, enabling a potential reduction in IHT from 40% to 36%.

While the technical note offers valuable detail on HMRC’s approach, it also highlights practical challenges for estates, particularly for families and executors dealing with incomplete information during bereavement.

HMRC intends to issue further information between now and next April, with final guidance expected in Spring 2027.

🇨🇭 Switzerland

Switzerland has approved changes to its loss carry-forward rules to provide businesses with greater flexibility.

Currently, companies and self-employed individuals can offset tax losses against future taxable profits for up to seven years. Following the reform, this carry-forward period will be extended to ten years.

The reform aims to support businesses impacted by the COVID-19 pandemic and to enhance Switzerland’s attractiveness as a business location.

The new rules will apply to losses incurred from the 2020 tax year onwards. Losses from 2019 and earlier will remain subject to the previous seven-year limit.

The changes apply to direct federal taxes as well as cantonal and municipal taxes and are expected to take effect by January 2028.

Americas

🇨🇱 Chile

A Bill has been submitted to Congress proposing several significant tax reforms. The main measures include:

A gradual reduction in the corporate tax rate from 27% to 23% by 2029.

The removal of restrictions on the dividend tax credit mechanism.

The repeal of the 10% capital gains tax on disposals of publicly traded securities, restoring the full exemption regime, effective from 1 January 2027 if approved.

The introduction of a temporary voluntary disclosure and repatriation regime for previously unreported or unrecognised foreign-source income and assets, subject to reduced substitute tax rates.

If passed, these reforms would lower effective tax burdens, improve repatriation flexibility, and provide greater long-term tax certainty. This would create notable planning opportunities for multinational groups and foreign investors operating in or considering investment in Chile.

The Government expects the measures to support annual GDP growth of up to 4% and reduce the unemployment rate to around 6.5% by 2030.

Asia / Pacific

🇦🇺 Australia

The Australian Federal Budget 2026-27 has been released. Key announcements affecting individuals include:

• The 50% Capital Gains Tax (CGT) discount for individuals and trusts will be replaced with cost base indexation and a 30% minimum tax rate on capital gains, effective from 1 July 2027.

This change will affect all investors in Australia and applies to property, shares, crypto, collectibles, and similar assets. The Australian Tax Office (ATO) has confirmed it will release a tool to assist with the transition.

• A minimum tax of 30% on distributions from discretionary trusts will apply from 1 July 2028. This minimum tax will not apply to other types of trusts.

The Government will also introduce a time-limited rollover to support the transfer of assets out of discretionary trusts into entities that are not discretionary trusts.

• An AUD250 Working Australians Tax Offset (WATO) has been introduced for eligible workers. This effectively increases the tax-free threshold from AUD18,200 to AUD19,985.