THE new UK tax regime could be better for the island than initially thought, according to one local banker.

James Blower (pictured), managing director of Clydesdale Bank International, said the potential for UK high-earners to look to Guernsey in the light of a top end income tax of 50% next April could be greater than the island believed.

What has not been widely understood, he said, was that the tax could affect more than those earning more than the £150,000 threshold levied on all taxable income and applied to all relevant income.

‘We have already started to see and hear of intermediaries as well as individuals looking to transfer capital to institutions, or work with structures here in Guernsey,’ he said.

‘The knowledge that people earning less than the £150,000 threshold may also be liable for the full 50% tax rate could lead to even further enquiries. It may ultimately also mean a wider range of earners doing business in Guernsey.

‘Those of us based on the island are in a very positive position to absorb the fall-out.’