Guernsey could sharply reduce the level of its tax cap in an attempt to persuade more wealthy entrepreneurs to relocate to the island, under plans being considered by the government.

The island introduced a tax cap of £250,000 ($445,000) paid on non-Guernsey sourced income as part of the package of tax changes introduced this year. But Charles Parkinson, treasury minister, acknowledges that the cap does not affect many on the island – “I don’t know if there are any.”