The British Property Federation (BPF) is set to clampdown on Jersey property unit trusts (JPUTs) after a rise in popularity is estimated to have cost the government over £500m in lost revenue this year alone.

Jersey based offshore trusts are popular because the Channel Islands are a separate jurisdiction with its own laws, while JPUTs are exempt from paying Stamp Duty Land Tax at a rate of 4%.

An announcement on the clampdown could be made as soon as the forthcoming pre-budget report. Consequently the BPF has already formed a working party in preparation of the rule changes.