Jersey Finance, the body which promotes the Crown dependency as an international financial centre, has sought to quash media speculation that the UK government is considering an offshore bank account tax to raise revenue for a deposit protection scheme.

“Recent reports have suggested that the UK government is considering implementing an offshore bank account tax as part of a deposit protection scheme and that this move would have an impact on Jersey. These reports are purely speculative and have no basis in fact.

“Jersey’s finance industry has no knowledge of the UK government imposing a tax on accounts held in Jersey, is not in discussions about such a move and has no intention to pursue such a course of action,” said Geoff Cook, chief executive of Jersey Finance, in a statement.

Late last year, finance minister Alistair Darling announced a review into the tax arrangements of offshore jurisdictions covering Jersey, Guernsey, the Isle of Man, Bermuda, the Cayman Islands, Gibraltar, the Turks and Caicos Islands, the British Virgin Islands and Anguilla. 

The review came as confidence in offshore banking plummeted after thousands of UK savers lost money in offshore accounts owned by Landsbanki Guernsey and Kaupthing Singer & Friedlander Isle of Man. 

Such accounts became the subject of controversy over whether UK depositors are entitled to compensation in the case of default by institutions operating in so-called “tax havens”.

Media speculation then followed that in future savers with money in offshore financial centres could be forced to pay tax on their accounts to fund a deposit protection scheme.

“These misinformed reports suggest that such a move would be in relation to the UK treasury’s recently announced review of the Crown dependencies and overseas territories.

“In fact, as Jersey Finance has stated previously, this review is welcomed by the industry. It provides Jersey with a further opportunity to demonstrate the high standards of regulation that are in place in the Island as well as its commitment to supporting the drive for greater transparency in global financial services,” said Mr Cook.