Mark Byrne is a director and shareholder of Martyn Fiddler Aviation. Mark studied law at the University of Westminster and received his MBA from Manchester ...Contact Mark Byrne
The Isle of Man is a tax haven. Fact or fiction?
Most definitely fiction! The Isle of Man is a self-governing jurisdiction that is part of the British Crown that enjoys separate autonomy and is known for its well-established finance and offshore sector. The Island is home to 86,000 residents and boasts the oldest continuous parliament in the world that has no debt to service. The Manx parliament is only allowed to pass fully funded budgets from taxation and its own reserves. The Government in turn provides a fully funded European style health care system, an excellent education system, a welfare system to support those that can't support themselves and provides all of the other functions that are expected from highly regulated international jurisdictions'. It pays the UK Government to provide defence (which it does well) and foreign affairs. To deliver all of these functions the Government clearly has to raise taxes to fund the provision of these services and so it has a very simple and transparent tax regime; residents pay income tax at 10-20%, it charges VAT on the goods and services, it charges Corporation Tax on some, but not all, commercial undertakings (specifically banking, large retailers and property development are taxed other commercial undertakings enjoy a rate of 0%), it charges duty on the usual range of goods like petroleum and alcohol. The Island does not impose capital gains tax, wealth tax, stamp duty or inheritance tax.