Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 46
Guernsey
Contributor: Mourant
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46
Loans and
financial
support
Matthew Guthrie | matthew.guthrie@mourant.com | +44 1481 731 424
Abel Lyall | abel.lyall@mourant.com | +44 1481 739 364
Robert Shepherd | robert.shepherd@mourant.com | +44 1481 731 418
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The States of Guernsey has agreed to underwrite 80% of any qualifying loan made
by participating banks to any trading business with less than GBP 10 million turnover.
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Businesses regulated by the Guernsey Financial Services Commission (GFSC)
are excluded.
Employment
•
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
The States of Guernsey has introduced a payroll co-funding scheme similar to that
in the UK whereby employers whose turnover has fallen below 70% (but is still above
40%) of their previous turnover, can access a grant to cover 80% of the statutory
minimum wage (GBP 8.50 an hour) on the understanding that the employer pays at
least the other 20%.
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Where a business can shows its turnover has fallen below 40% of its normal levels, it
can access a grant to cover 100% of the minimum wages.
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The scheme will run to 30 June for a limited number of sectors. Detailed advice should
be sought as to whether your sector would be covered.
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The scheme has now been extended to the self-employed.
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In addition, any business with less than 20 staff as well as the self-employed may apply
for a one-off grant of GBP 3,000 and individuals may apply to a hardship fund which
has been set up.
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Other measures to support business include the deferral of Social Insurance
contributions, local business rates and rent owed to States entities.
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For the most up to date information on financial and business support, please follow
this link here.
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Consideration is being given by the Guernsey government to potential temporary
changes to Guernsey’s insolvency laws, in particular regarding wrongful trading,
though there are no clear proposals to date. Guernsey’s wrongful trading provisions
are somewhat more relaxed than the UK equivalent. Once a director concludes (or
ought to have concluded) that there was no reasonable prospect of the company
avoiding insolvency winding up, the director has a duty to take every step to minimise
losses to creditors “he ought reasonably have taken”. The Guernsey test introduces a
reasonableness qualification on the every step test not expressed in the UK statute.
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Significant amendments to the insolvency laws were passed by the States of Guernsey
on 15 January 2020 and are expected to come into effect shortly.
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Changes to Guerney’s Insolvency Regime
Has the
government put in
place any new bank
funding schemes?
Insolvency
Has the
government made
any changes
to insolvency
legislation?
Government measures in key jurisdictions
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