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Isle
of Man finance centre
The Isle of Man is unique in being able to offer expatriates
an exceptional quality of life, coupled with a modern
and progressive economy.
The Island has a world-leading telecoms and communications
infrastructure, is home to a wide range of lawyers, accountants
and professional investment advisers, and is conveniently
only an hour’s flying time to London.
The Isle of Man’s national taxation strategy incorporates
a number of measures, the most significant being a move
to a standard zero rate of corporate tax with effect from
6th April 2006, with the exception of a small number of
companies that will be taxed on certain income sources
at a rate of 10 per cent, principally those holding a
banking licence.
This, combined with no capital gains, inheritance or wealth
taxes, means the island is the ideal location for your
investments.
There are no restrictions on relocation to the island,
other than those under the Immigration Act which apply
equally in the UK. And there are no restrictions on buying
property either.
20 things you should know about the Isle of Man
1. It is located in the Irish Sea at
a point that is approximately equidistant between England,
Scotland and Northern Ireland.
2. Offshore banking, manufacturing and
tourism are the three largest sectors of the Island’s
economy and account for the vast majority of its GDP (35.1
per cent in 2005).
3. The four key areas within the Isle
of Man’s financial services sector are: banking,
funds, insurance & pensions, and corporate services.
4. It is a low-tax economy with income
tax rates of 10 per cent and 18 per cent and a zero per
cent rate for corporate tax –which may become even
more attractive following the annual budget in March.
5. The government offer incentives to
financial institutions and high-technology companies to
locate their business on the Island.
6. The Island became the most competitive
jurisdiction in Europe for both the formation and the
operation of international business companies on 1 November
2006. With renewed flexibility, a better structure and
simplifications of many procedures, it is hoped that it
will prove encouraging for businesses to relocate.
7. There are currently 48 licensed banks
located on the Isle of Man. Expat investors can choose
from majority of the world leading banks including; HSBC
Offshore, Abbey National Offshore, Anglo Irish Bank, Royal
Bank of Scotland International, and NatWest – a
lot of whom offer additional online offshore services.
8. Banks need to obtain a license to
conduct business on the Isle of Man, meaning that they
must conform to certain strict criteria laid down by the
FSA. If granted one, the bank is then subject to the terms
of the Investor Protection Legislation which both helps
prevent money laundering and effectively protects 75 per
cent of the first £20,000 of the account holder’s
assets (or the Sterling equivalent).
9. Before granting this license, the
FSA rigorously examine an institution’s track record,
its financial standing, the financial status of any parent
company, the overall quality of the institution and its
management – a comforting fact for an expat investor
who wants to know their money is in safe hands.
10. Majority of the banks are engaged
in providing private banking services to UK expatriates
and foreign nationals.
11. A lot of funds are based on the Island
– totalling up to 422 at the end of 2006 –
and include HSBC, Anglo Irish and Fortis, due to tax breaks
and lower operating costs meaning that investors get the
best deal.
12. The Isle of Man accounts for approximately
80 of the total 1550 listings on AIM
13. Many of the Island’s financial
institutions have already been established for more than
100 years.
14. Personal tax allowance increased
in February 2006 to £8,670 for a single person and
£17,340 for married couples, whilst the income tax
threshold increased to £10,500 with a cap of £100,000
in any one year for an individual.
15. The Island is a self-governing crown
dependency, which has been under English control since
the 14th Century. The British monarch was made Head of
State in 1765.
16. The UK has paramount power to legislate
for the Island and is responsible for its defence. It
is not deemed to be a member of the EU, and therefore
the UK takes responsibility for the Island’s international
relations and ultimately for its ‘good governance’
17. There is no ‘Manx citizenship’
and all islanders are classed as British citizens –
although those with non-British descendance are not allowed
to freely live and work in the EU due to an endorsement
in their passports.
18. The island’s ancient parliament,
known as Tynwald, was established in 979AD and comprises
the House of Keys and the Legislative Council, who together
have a high degree of autonomy over Manx legislation.
19. The Island lies outside the European
Economic Area (EEA) and therefore is not a member of the
EU. Although Manx people, capital and services are not
allowed to be freely moved within the EEA, the Island's
goods are.
20. The full range of services available
in the Isle of Man includes; Accountancy, tax advice and
audit, personal and corporate banking, investment management,
advice and dealing, international pensions and life assurance,
mutual fund products and fund management, bond and securitisation
issues and global custody.
5 things you might not
• The Bee Gees were born and raised on the Isle
of Man, and it was where Barry wrote the music for Saturday
Night Fever.
• It was used as a base for Alien Civilian Internment
camps in both the First and Second World Wars.
• The Island has a road with no speed restrictions
meaning drivers can go as fast as they like, so it comes
as no shock that journalist and Top Gear host, Jeremy
Clarkson, lives in a Manx lighthouse!
• Harry Potter and the Chamber of Secrets, the second
film based on the Harry Potter series of books, was filmed
on the Isle of Man, as was 90s hit children’s TV
drama Five Children and It.
• The Island receives electricity through the world's
longest submarine AC cable, the 90 kV Isle of Man to England
Interconnector.
For further information please visit our website
or email
us
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