No big influx of rich, warns expert

Wednesday 29th April 2009, 2:59PM BST.

Director of high-value residency Nigel Philpott

EXPECTATIONS that higher UK taxes could prompt rich residents to move to Jersey could be disappointed, at least in the short term.

Nigel Philpott, director of high-value residency at Economic Development, says that although there has been an increase in inquiries from potential 1(1)k residents, the economic downturn is putting obstacles in their way.

‘The wish to do it is increasing, but the ability has decreased,’ said Mr Philpott, pointing to the slowdown in the housing market in the UK.

Last week UK Chancellor Alistair Darling announced a punitive 50% tax on earners with annual income of £150,000 or more, with speculation in the national media that those who could afford to would take their business elsewhere and concerns that entrepreneurship would be stifled as a consequence.

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1
A

April 29, 2009 at 6:57 pm

I wonder why we never hear how many multi-millionaires came to the Island last year as all we seem to here is that they dont pay enough wqhen there here maybe someone could tell us

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2
The Frenchie

April 30, 2009 at 8:12 am

I cant believe that the States actually have a High Value Residency Dept! How many people are employed there ( at the tax payers expense)? Do they honestly have that many 1(1)K applicants which calls for a “department”- quite bizarre and rather annoying.

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3
Pip Clement

April 30, 2009 at 11:59 am

There is also the fact that more sophisticated communications and huge advances in corporate structures means that very rich people can live in the country they choose while sheltering substantial parts of their wealth elsewhere.
The days of wealthy oldies sitting in a house in Jersey with their dosh stuck in the local branch of one of the big name clearers is slowly on the wane.
Jersey is becoming more provincial year by year as the tourist trade declines and more extertainment, restaurants, air and sea routes etc are knocked on the head.
The wealthy may pay more tax elsewhere but there is more to do and the climate is probably better!

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4
R B Bougourd

April 30, 2009 at 9:26 pm

This is an extract from a comment I have posted on an allied thread.

How about this for an idea?

Make it only marginally more atractive finacially for the wealthy to live in Jersey rather than the UK.

Then we would see straight away who truly wants to enjoy what the rest of us regard as a unique lifestyle.

Anyone rich who leaves will vacate a high end property which I am sure won’t stay empty for long.

The tax revenue wouldn’t drop that much especially if all high earners pay a
realistic amount.

What the hell if they do go to Monaco or Cyprus?

I can assure you that there will never be a shortage of reasonably wealthy people with better reasons than tax avoidance for wanting to live in the Channel Islands who would gladly settle here if only they had the chance.

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5
Happy Horse

May 1, 2009 at 8:18 am

Not sure why you are worrying about the wealthy, what about the hundreds of penniless people who come to live in the squalid bedsits of St Helier. THey are the one costing us money. As soon as they have been here 5 years they are on the benefits gravy train.

The wealthy at least pay their way

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