GUERNSEY must reduce its maximum tax cap if it wants to attract wealthy individuals, according to experts. At the moment the island has its set at £250,000, while in Jersey rate reductions take effect after £100,000 is reached.
Confederation of Guernsey Industry chairman Peter Budwin (pictured) said Guernsey was at risk of becoming uncompetitive.
‘We must rectify the situation as quickly as possible so that we can attract tax exiles here. These people are the ones who will come here in some cases retired or semi-retired, get bored and start up a business.’
The Isle of Man introduced a £100,000 tax cap two years ago and has subsequently attracted 76 wealthy individuals since then.
‘I don’t think we could ever attract another Specsavers here because we don’t have the land or people for that, but if we could bring in three or four a year, that would be good.’
Article posted on 4th October, 2008 - 9.29am
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2 Article Comments
How many very wealthy tax exiles actually spend much time in the island contributing to the infrastructure of the Bailiwick. I don’t understand why capping their income tax at £100,000 is going to affect the wealth of the island. Perhaps someone with more knowledge would be able to explain?
My partner and I work full time, pay the going rate of income tax and social insurance, full university fees for our 2 children (as our joint income is just over the joint £75,000 limit). We are struggling with the increased costs in consumer goods and higher cost of living and our mortgage. If a reduced tax cap on the very wealthy would make the lives of our and other medium earners a bit easier then i would perhaps understand why it was being mooted as a good idea.
First thing that springs to mind is where will all these new immigrants live. Remember that for every person that gets their tax reduced we have to import another one and a half extra people, plus their families, just to keep Tax takings the same. Once again a new policy would seem to favour the rich, a bit like not raising the cap on social insurance, which matt falaize tried to recently accomomplish. I suppose some new taxes (eg green tax) will soon be introduced unto the lower and middle earners to make up for these lost revenues.