Guernsey could create a dedicated innovation fund by modestly adjusting existing tax routes for high-value and internationally mobile residents, according to a new proposal from Innovate Guernsey.
The organisation says Guernsey has set out ambitions for an innovation economy but currently has no dedicated mechanism to fund it. Innovate Guernsey is proposing that existing tax routes for high-value and internationally mobile residents, currently capped at £60,000 a year compared to £220,000 in the Isle of Man and £250,000 in Jersey, could be reviewed, with part of the additional revenue ring-fenced for a properly governed innovation fund.
The board is asking whether the current contribution levels remain calibrated appropriately, given that comparable jurisdictions charge materially more.
“Guernsey has set out real ambitions for an innovation economy, but there’s currently no dedicated way to fund them. Reviewing whether existing revenue routes could be modestly adjusted, with a defined portion ring-fenced, is a practical way to create that funding stream, building on mechanisms already in place rather than designing something new,” said Susan Watson (pictured), Chair of Innovate Guernsey.
Innovate Guernsey’s proposal includes a modest increase to the open market tax cap, alongside a review of the resident-only standard charge, with part of any additional revenue directed into a dedicated innovation fund.
The organisation says that even a meaningful adjustment to £100,000, £125,000 or £150,000 would still leave Guernsey below both Jersey and the Isle of Man.
During research carried out by Innovate Guernsey, several high-value residents indicated they would accept a higher contribution, particularly if the additional funds were ring-fenced specifically for innovation rather than absorbed into general revenue.
Under the proposal, any additional revenue would flow into a transparent and properly governed innovation fund focused on co-investment alongside private capital, skills and talent development, testbed environments, and seed support designed to create conditions for further private-sector investment. Innovate Guernsey says the fund would be structured to attract rather than displace private money.
“We’re seeing some of the most innovative entrepreneurs in the world choosing Guernsey right now and they want to contribute. These are people who’ve already built and scaled businesses globally, who are genuinely excited about what they can do here, and that’s an incredible asset,” added Susan Watson.
“The conversation we want to have is: how do we harness that energy, that experience, those networks, for the island’s future? And how do we make it easy for them to plug in, to build and to mentor the next generation.”
