MOVES have begun to introduce a lower income tax cap for Guernsey residents.

Treasury and Resources minister Charles Parkinson (pictured) has been signalling his wish to lower the £250,000 cap, the maximum amount of tax payable, since its introduction on 1 January. Today he announced that the department is to go out to consultation on new proposals.

‘The tax cap is not competitive so the department is considering whether it would benefit the island to offer a more attractive deal. If we attract any high net-worth individual because of the reduction of the tax cap, that’s an extra £100,000 that we wouldn’t have had otherwise. If it’s a married couple, then it’s an extra £200,000.’

Deputy Parkinson said the department had received a number of representations from local accountancy firms and people representing wealthy individuals suggesting the rules should be changed.

It is consulting with the intention of gauging if there would be longer-term financial benefits in making a change.