GORDON Brown’s tax policy could prompt an influx of entrepreneurs into Guernsey, according to a leading academic.

‘There has been a capital gains tax fiasco,’ said Professor Natalie Lee (pictured), head of the School of Law of the University of Southampton, an expert in personal tax, trusts and succession.

She said that the introduction of taper relief against CGT had initially provided a reduction in tax liability the longer an asset was held. But taper relief had been abolished in April.

‘In doing away with taper relief, the UK Government introduced a higher rate of capital gains tax but forgot about those with small businesses who might be retiring and selling those businesses,’ said Prof. Lee. ‘What I am suggesting is that there are small-business owners and entrepreneurs in the UK who are getting absolutely fed up with this state of disarray and the way in which they are being treated. I think it might impact on places such as Guernsey insofar as these people might think of relocating. People are moving. Businesses are already upping and going.’