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The Isle of Man – Your New Island Home?
The beautiful Isle of Man is situated in the heart of the Irish Sea, centrally located between England, Ireland, Scotland and Wales. Whilst the island may be small, just 572 km2, with its rugged coastline and rolling hills it can give you and your family space to breath, relax and enjoy what island life has to offer.
The Isle of Man has been a self-governing Crown Dependency since 1866, and this political independence, combined with its strong democratic values, has enabled the Isle of Man to be governed efficiently over the past 150 years.
Advantages Offered by the Isle of Man
The Isle of Man Government has always adopted a forward thinking and pragmatic domestic and international approach, which allows the close knit community of approximately 87,000 people to benefit from the following advantages:
The natural resources of the island enable residents to pursue a variety of recreational and sporting activities. The growth of the sporting community on the island has been supported by the Isle of Man Sports Council www.isleofmansport.com and the Manx National Lottery Fund.
- Crime (or lack of it)
The Isle of Man has one of the lowest crime rates in the EU. This is further enhanced by a strong community spirit.
- Low Unemployment
The Isle of Man currently (April 2016) has an unemployment rate of 1.8%. Whilst there is a requirement for non local residents to hold a work permit for the first 5 years of residency, the work permit process is, in most instances, a relatively straightforward process. www.gov.im/categories/working-in-the-isle-of-man/work-permits/faqs
The Isle of Man is consistently rated as having a standard of living equal to those regions with the highest standard of living in the UK. There are no restrictions on buying property for those not born or raised on the island.
The Isle of Man has a high quality of education. Recently the Government invested in a programme to modernise all of the schools, and the island achieves one of the top sets of comprehensive school results in the UK, with private schools also positioned well in the UK rankings.
The island has excellent transport links. The large international carriers, including British Airways, easyJet, and Flybe offer routes from the Isle of Man to Dublin, Edinburgh, Geneva, Liverpool, London and Manchester. In addition, the island has the runway capacity to handle large private aircraft, including the Global Challenger 7000.
- Tax Advantages for Individuals
The standard rate of income tax in the Isle of Man is 10%, with a higher rate of 20%. A tax cap of £150,000 (£300,000 for jointly assessed couples) exists on personal income tax liabilities in any one tax year for individuals living in the Isle of Man. To be tax resident in the Isle of Man the Assessor of Taxes must be satisfied that there is an intention to establish residence on the island, rather than there being a presence on the island for a temporary purpose.
- The Key Employee Concession (KEC)
The KEC can be extremely beneficial to new arrivals on the Island and may even be more beneficial than the tax cap, in certain circumstances. It applies to individuals who are required to move to the Isle of Man by their employer and who are essential to the implementation and operation of new business on the Island. In order to grant the KEC, the Treasury must be satisfied that the new business is in the economic interests of the Isle of Man and will provide additional productive employment on the Island.
When the Concession applies the individual will be resident for Isle of Man income tax purposes and therefore subject to resident income tax rates, allowances and reliefs. However the majority of additional income sources will be treated, for Isle of Man tax purposes, as if the individual was not resident on the island.
This could be extremely beneficial if, for example, a wealthy entrepreneur who has substantial income streams from non-Manx sources moves to the Island and sets up a business on the Island. Of course, for the KEC to apply to them, they would have to be employed by that business on the Island.
- Tax Advantages for Companies
A zero rate of corporation tax applies to company profit.
The only exceptions to this zero rate are banking business, which is taxed at 10%, retail businesses with profits in excess of £500,000, which are also taxed at 10%, and income from land and property in the Isle of Man, which is taxed at 20%.
There is a requirement to prepare annual accounts, however, for private companies there is no requirement to file these. There is also a requirement to complete an annual tax return.
- Government Support for Inward Investment
The Department of Economic Development has solid experience in assisting businesses to relocate to the Isle of Man. A Relocation Manager can be appointed to act as a single point of contact for all relocation matters relating to the Isle of Man. In addition, the island’s Financial Assistance Scheme provides a range of grants to eligible businesses within qualifying sectors.
UK Immigration Rules are extended to the Isle of Man for regulating the entry into, and the stay of persons in the Isle of Man. Whilst the Isle of Man has its own Immigration Rules (based on UK immigration rules), the United Kingdom represents the Isle of Man’s interest in Diplomatic and Foreign Affairs. British Embassies overseas accept and process visa applications for the Isle of Man and other Crown Dependencies (CDs), referring the applications to the islands’ Entry Clearance Officers to determine a decision.
If you would like further information regarding the advantages offered by the Isle of Man and how you might take up residence there, please speak to Steve Doyle at the Dixcart office in the Isle of Man or to your usual Dixcart contact.
Dixcart Management (IOM) Limited is licensed by the Isle of Man Financial Services Authority