The Channel Islands - The World’s Most Unique Political Structure

The Channel Islands are incredible, but only a few people know much about them other than being a great expat and tourist destination. In this article, we will explore more intricately the inner workings of the main islands; Jersey, Guernsey, and Sark.

To begin discussing their political structure, we must explain a few details that apply to all islands. Even though they have independent self-governance, they are Crown Dependencies bailiwicks. Their political system's complexity can already be seen through its summary.

These islands are owned by the British Crown, but are not directly part of the United Kingdom

WHAT IS A CROWN DEPENDENCY?

Crown Dependency is the term given to independent self-governing island territories. These island territories are possessions of the British Crown but not part of the UK. Crown Dependencies are not sovereign states; the reigning monarch has legislative power over the islands. However, it isn’t typical for the reigning monarch to pass legislation without the consent of the dependencies.

Although the Crown Dependencies are not part of the UK, they are members of the British-Irish Council. Each Dependency has its own head of government and proper title. In Jersey, the head of government is the Chief Minister. In Guernsey, the head representative is the Policy and Resources Committee President. Lastly, for The Channel Islands, we have Sark, part of the Bailiwick of Guernsey but has a hereditary head of government, a feudal lord, a parliament, and self-governing.

Related content: What Are The Channel Islands?

WHY ARE JERSEY AND GUERNSEY OFFICIALLY CALLED BAILIWICK?

The British Crown has the power to pass legislation on the Channel Islands. However, they are all independent and self-governing. Although its citizens are British and UK, the islands do not belong to the United Kingdom or European Union.

Typically, a bailiwick refers to the jurisdiction of a bailiff. Historically, it also referred to territories where a privately appointed bailiff carried out the duties of a sheriff under a royal or imperial writ. Today the bailiffs are chief justice and leader of the legislature in each bailiwick of The Channel Islands.

Simplifying “bailiwick” means "bailiff's village." which was how it worked initially. The term is still used in the British Crown Dependencies of the Channel Islands. These islands are divided into two bailiwicks, the Bailiwick of Jersey and Guernsey, each headed by a Bailiff. Despite being Bailiwicks, there is a difference between Jersey and Guernsey.

If you are an entrepreneur looking for a place with low taxes, Jersey may be an option, as they do not tax corporate income

THE BAILIWICK OF JERSEY

Now that we have covered the basics of understanding each bailiwick's political complexities let’s discuss their internal systems. The Bailiwick of Jersey is the largest of the two bailiwicks of The Channel Islands. It is a self-governing Crown Dependency near the northwest French coast.

The current Chief Minister in Jersey is Kristina Moore. She was elected on July 5, 2022, and took office on the 12th. As stated above, the island also has a bailiff, Timothy Le Cocq, who was appointed by the late Queen's Solicitor General for Jersey and made the Queen's Counsel on April 2008.

The States of Assembly, Jersey’s parliament, has 54 members. Of the 54 members, 49 have the right to vote in any and all voting within the government. Jersey has a democratic parliamentary system that votes in these 49 members. Here is a list of the 54 members of parliament and their roles.

• The Lieutenant-Governor: is His Majesty The King’s representative. His or her role is to attend assemblies, and does not have the right to vote and usually is just an observer and has a 5-year term.

• The Dean of Jersey: is the head of the Anglican church and chaplain in Jersey. The Dean has no right to vote but will speak of issues concerning the church and morals.

• Attorney General and Solicitor General: they are appointed by the Crown and do not have the right to vote. They serve as advisors to the assembly and usually only speak on matters of their interest or when advising any members.

• Officers of the States: is the Greffier of the States, put in simpler words, the Clerk of the States, Deputy Greffier (Clerk Assistant), and the Viscount the Executive Officer of the States. The officers of the States also do not have the right to vote.

• The 12 Parish Connétables: Connétables is the French word for constable. The twelve constables of the parishes have the right to vote and have a four-year term.

• 37 Deputies: the role of Deputy was instituted in 1856. They each represent a constituency, containing one or more or a part of a Parish, and they have a right to vote and a four-year term in office.

These are the 54 members of The States Of Assembly in Jersey. Only the Deputies and Constables have the right to vote, but all have the right to speak in the assembly if they need or wish to.

TAXES IN JERSEY

Jersey has favourable taxes for those wanting to live or invest on the island. Jersey taxes its residents up to 20% of their global income. Non-residents can be taxed the same but only on Jersey-sourced income. With exceptions, goods and service taxes are meagre at 5%, but you will not be taxed on inheritance or capital gains. This is a paradise compared to many countries that will tax you from 30-50% on personal income tax.

If you are an entrepreneur looking for a place with low taxes to establish your company, Jersey might be the perfect place for you, as they do not tax corporate income. However, there are some exceptions to this. Financial service companies are taxed 10%, utility service companies are taxed 20%, large corporate retailers can be taxed up to 20%, and company income from property and property development.

BAILIWICK OF GUERNSEY

Guernsey is a British Crown Dependency situated in the English Channel. Its government structure is unique and differs from any other political system you may have encountered. Guernsey is a committee-based system like Jersey used to have until it was abolished in 2005.

The Guernsey government is headed by a bailiff, who is the highest-ranking official on the island and serves as both the presiding officer of the parliament and the head of the judiciary. The British monarch appoints the Bailiff upon the advice of the Privy Council and generally holds office until retirement age (65). The Bailiff is responsible for ensuring the proper administration of justice, presiding over the States of Deliberation, and exercising various ceremonial duties.

Despite being a Crown dependency, Guernsey has a high degree of autonomy from the UK, with the power to make laws and collect taxes

GUERNSEY’S COURT OF OFFICIALS

The Bailiwick of Guernsey has several officials in it. They range from the Bailiff to H.M. Sheriff. Listed below are the offices and their roles in the Court of Guernsey:

• Bailiff: Richard McMahon has been Guernsey’s presiding Bailiff since 2020. The Bailiff serves as the leading citizen, although he is not a representative of political matters. His roles involve civic, judicial, and other limited but important parliamentary roles.

• Deputy Bailiff: Jessica Roland is Guernsey’s presiding Deputy Bailiff. The Deputy Bailiff is appointed, like the Bailiff, by the Crown by Letters Patent under the Great Seal and first recommended to the Sovereign by the standing Bailiff. The Deputy Bailiff’s role is an extension of the Bailiff’s for the Court’s judicial area and acting as Bailiff while there are none, as when they are changing Bailiffs.

• H.M. Procureur: His Majesty’s Attorney General is a Crown Law Officer and head of the Bar. His role is to provide legal advice to the Departments of Committee, the States, Guernsey’s Financial Services Commission, and also advise the H.M Sheriff and Sergeant.

• H.M. Comptroller: His Majesty's Solicitor General is another Crown Law Officer and a Junior to the Attorney General. The H.M. Comptroller has similar roles to the H.M. Procurer in advising legal and constitutional matters.

• H.M. Greffier: the Greffier is His Majesty’s Clerk and deals with various matters, such as helping the Judiciary in preparing revisions to a range of Practice Directions and Orders of the Royal Court, managing costs and fees, being a registrar of marriage, property, birth, deaths, and other paperwork involving the functions of the States of Deliberation and the States of Election.

• H.M. Sheriff and H.M. Sergeant: The Office of HM Sheriff and HM Sergeant is responsible for enforcing court orders to recover money, execute restitution and compensation orders, and enforce fines, as well as ensuring child maintenance payments are made and carrying out evictions. The department may arrange payment plans or sell personal property to recover money owed. They are also responsible for serving legal notices and carrying out civic ceremonial duties as required by the Royal Court. Additionally, the HM Sheriff maintains order in meetings of the States of Deliberation and States of Elections while the HM Sergeant keeps the order in sittings of the Court.

The States of Deliberation is the parliament of Guernsey and is composed of 38 members, known as deputies. The people of Guernsey elect the deputies every four years through a system of island-wide voting. The States of Deliberation is responsible for making laws and overseeing the executive branch of government. The States also approve the budget and make decisions on matters such as taxation, healthcare, education, and the environment.

In addition to the States of Deliberation, there is also a system of parishes in Guernsey, which are responsible for local government and services. Each parish has its own assembly, a Douzaine, responsible for managing local affairs such as roads, public areas, and community events.

Despite being a Crown Dependency, Guernsey has a significant degree of autonomy from the United Kingdom. The island is self-governing, with the power to make its own laws and to levy its own taxes. However, the island is still subject to the overall authority of the British Crown, and the bailiff serves as the representative of the Crown on the island.

Overall, the government structure of Guernsey is a unique blend of democratic and feudal elements. The bailiff system, unique to Guernsey, serves as a vital part of the island's governance, while the democratically elected parliament provides a voice for the island's citizens. Together, these two elements ensure that Guernsey has a stable and effective governance structure capable of responding to the needs of the island's inhabitants.

Guernsey is the second-largest of the Channel Islands and has a population of around 65,000 people. The government of Guernsey is known for being business-friendly, which has helped attract many expats to the island. The government has also made life easier for expats in other ways. For example, the Guernsey Health Insurance Plan provides access to high-quality healthcare for all island residents, including expats. This plan is funded through employer and employee contributions, covering all necessary medical treatment, including specialist referrals and hospitalization.

Another way that the Guernsey government is helping expats is through its Education Department. The Education Department is responsible for providing high-quality education to all children on the island, regardless of their background. This means that expat children have access to the same education as local children, which can help them to integrate into the community and feel more at home on the island.

Sark has a government of 18 elected members who are responsible for all matters except defence, which is provided by the UK

SARK

Sark is a small island with a population of around 500 people. The island is unique because it is a Fief Haubert, the highest form of feudal tenure with direct contact with the King. In essence, Sark is ruled by a Feudal Lord.

GOVERNMENT

Sark has a unique Judiciary system that has remained essentially unchanged for centuries. Under this system, the Fief Haubert has its own court, and the seneschal presides over it with unlimited civil powers and limited criminal powers. A Greffier, or clerk, and a Prevot, or sheriff, support the role of the seneschal. This judicial system was established after the Guernsey model in 1675, replacing the previous Jersey model it used to follow.

The government of Sark is made up of 18 elected members who are responsible for all matters except defence, which the UK provides. The small size of the government allows for greater efficiency and a more direct representation of the island’s population. This also makes government-related procedures much faster since you don’t have many agencies to answer to.

MEDICAL

One General practitioner (GP), a nurse, and a team of First Aid trained first responders to support and provide medical care on the island. The surgeon can conduct minor procedures, such as appendectomy, and other minor surgeries in situations where transportation to Guernsey is impractical. However, for more severe cases, patients are transferred to Guernsey or the UK for treatment.

HOUSING

The real estate market is completely free and independent of any governmental control. Sark has housing for its employees, such as doctors and teachers. The individuals handle the real estate market entirely. Housing prices are often high due to limited availability and are now in greater demand.

EDUCATION

The island's Education Committee is responsible for providing high-quality education to all children. There is a small primary school on the island, and secondary education is provided at the Guernsey Grammar School and Sixth Form Centre. The Education Committee also provides support to expat families, including information on schools, admission requirements, and the curriculum.

Channel Islands investment programs are subject to frequent changes, and please contact the Expat Money team to stay up-to-date

PROMOTION OF ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT AMONG EXPATS IN THE CHANNEL ISLANDS

The Channel Islands' investment programs are subject to frequent changes, and it is important to note that rumours are circulating that the investment programs in Jersey and Sark may be cancelled as the Guernsey investment program is. Therefore, staying updated on the latest developments is crucial. It is advisable to contact the team at Expat Money for the most current and accurate information regarding these programs.

These governments have proactively attracted high-net-worth individuals (HNWIs) to their jurisdictions. HNWIs have net worths of $1 million USD or more and can significantly impact the local economy. They often invest in local businesses, buy properties, and spend money on luxury goods and services.

Although the government of Guernsey has discontinued the investment program, and there is often a lack of transparency in many of these programs, the Islands’ governments have all implemented various measures to attract HNWIs to their islands. For example, the government has introduced tax breaks and other incentives to encourage HNWIs to relocate to their jurisdictions. They have created favourable business environments with low taxes, streamlined regulation, and easy access to finance. As a result, several multinational corporations have set up operations in the Channel Islands, providing job opportunities for locals and expats alike.

Related content: The Channel Islands: A Wealth of Investment Opportunities

The biggest challenge the governments of Guernsey, Jersey and Sark have faced in recent years is the impact of Brexit

PROVIDING ACCESS TO CULTURAL AND RECREATIONAL ACTIVITIES

Guernsey, Jersey, and Sark governments support expats by providing access to cultural and recreational activities. The islands have a rich cultural heritage, and the governments have implemented measures to ensure that expats can engage with and participate in local cultural events and activities.

For example, the Guernsey Arts Commission offers various services and programs to promote and support the arts on the island. These include exhibitions, workshops, and educational programs open to all community members, including expats.

Similarly, the Jersey Heritage Trust is responsible for preserving and promoting the island's cultural heritage. The trust operates a range of historic sites and museums open to the public and offers a range of educational programs and events.

For Sark, the government has implemented measures to promote and support outdoor recreational activities on the island. The island is known for its stunning natural beauty, and the government has established policies to ensure that expats can enjoy and appreciate its natural environment. For example, the government has implemented policies to protect the island's marine and coastal environments. Also, it offers a range of programs and events that promote outdoor recreation and appreciation of the island's natural beauty.

CHALLENGES

One challenge that the governments of Guernsey, Jersey, and Sark have faced in recent years is the impact of Brexit. As Crown Dependencies, they are not part of the UK or the EU, but they have historically had close ties to both. With the UK's decision to leave the EU, the Channel Islands have had to navigate a complex web of regulations and agreements to ensure their economies remain competitive.

The governments have responded to this challenge by working closely with the UK and the EU to negotiate favourable trade agreements and ensure their interests are represented. They have also taken steps to diversify their economies, reducing their dependence on the financial services sector and investing in tourism and renewable energy.

Related article: The Basics Of How To Get A Second Passport Or A Second Residency

Channel Island governments have demonstrated a commitment to making their islands attractive destinations for expats

FINAL THOUGHTS

The governments of Guernsey, Jersey, and Sark have shown a commitment to making their islands attractive destinations for expats. By providing a range of services and benefits, they have made it easier for expats to settle into island life and enjoy all these beautiful locations. They have also demonstrated a proactive approach to attracting high-net-worth individuals and businesses to their jurisdictions, providing job opportunities and economic growth for locals and expats alike. While there are challenges to be faced, such as Brexit, the governments of the Channel Islands have shown that they are up to the task and remain committed to ensuring a bright future for their islands and the expats who call them home.