The Isle of Man has a distinct cultural and political identity. It is a land of possibility where people and business can reach their full potential. Government policy is to be both economically competitive and internationally responsible in supporting the interests of its people.

 

Political and Historical Background

Status: Self-governing British Crown Dependency with its own government and laws. The Island is not part of the United Kingdom and has no representation in the British Parliament. The British Crown is ultimately responsible for the Island’s external relations. The Isle of Man is not part of the European Union, but it has a limited relationship with the Union under Protocol 3 to the United Kingdom’s Act of Accession in 1972. This allows for the free trade of agricultural and manufactured products across the EU. The Isle of Man is part of the European Common Customs Area.

Head of State: Her Majesty Queen Elizabeth II, "Lord of Mann", represented on the Island by the Lieutenant Governor.

Parliament: Tynwald, founded over 1,000 years ago. It is considered to be the oldest continuous parliament in the world.

History: The Island was ruled by Norse, Scots and English Kings in the Middle Ages, and by sovereign Lords of Mann from 1406 until 1765, when it was acquired by the British Crown.

Government: Its ministerial system of government is lead by the Chief Minister who is elected by Tynwald from its Members. The Ministers of the nine government departments join the Chief Minister to form the Council of Ministers

 

Leading Offshore Jurisdiction

Corporate Income Tax: The standard rate of corporate income tax is 0%, except for two defined activities which are taxed at 10%: licensed banking business; and corporate income from Manx land and property.

Indirect Taxation: The majority of government income comes from VAT and other indirect taxes. Under a bilateral agreement, these are levied at the same rate as in the UK.

Personal Income Tax: Income tax rates and allowances are competitive. Individual income tax liability is capped at £100,000 per annum. There is no capital gains tax, inheritance tax or wealth tax.

Tax to GDP Ratio: The annual tax to GDP ratio, calculated using standard OECD (Organisation for Economic Co-operation and Development) methodology, is 34%: only 2% below the OECD average.

TIEAs: Tax Information Exchange Agreements (TIEAs) are in force between the Isle of Man and the United States and the Netherlands. Agreements with Ireland, Norway, Denmark, Sweden, Finland, Iceland, Greenland and the Faroe Islands have been signed and are in the process of ratification. TIEAs and other Agreements with further countries are under discussion. Paolo Ciocca, Chair of the OECD’s Committee on Fiscal Affairs, after the signing of the Nordic Agreements commented: "The agreements show that the Isle of Man is forging ahead in implementing its commitment to international standards."

 

Other Isle of Man Statistics

Nationality: Manx

Population: 80,000 (2006)

Location: In the middle of the Irish Sea at the heart of the British Isles

Land area: 221 sq. miles

Length: 33 miles

Width: 13 miles

Head of State: Her Majesty the Queen

Official Language: English

Currency: Pound Sterling although the Government prints the Manx Pound

Time zone: GMT

Capital: Douglas

Local symbol: “The Three Legs of Man” - An ancient Triskelion: three bent legs, each with a spur, joined at the thigh.

 

Freedom to flourish

The Isle of Man has not only led the way in introducing internationally recognized legislation to encourage transparency but has ensured the right balance around protecting privacy. Our clients are extremely mobile these days and therefore are keen to domicile their wealth in a jurisdiction that is politically stable and has a strong fiscal and regulatory framework. In summary, they are attracted to the Isle of Man because of the island’s strong culture of regulation, and its high level of professionalism in the financial, accountancy and legal arenas.