Guernsey Faces Future With Confidence

Some commentators have been speculating that the return of a Labour government in the UK would pose a threat to Guernsey and other offshore centres; others speculate on the contrary that it would mean a lot more business.

Neither view is well founded, says Peter Crook, Director General of the Financial Services Commission. 'We have always had excellent relations with H M Government, regardless of the political complexion of that government. The UK authorities have long recognised that on balance the international business of the Islands is a distinct plus for Britain,' he says.

If anything, says one leading Guernsey-based accountancy practice, BDO Reads, it is Britain itself which is liable to be affected as a tax haven. Thousands of foreign nationals currently living there face the loss of their favoured tax status (as being overseas domiciled although living and working in the UK) and having to pay tax on their non-UK income.