Why the Isle of Man? 

The taxation system in the Island is entirely separate from that of the UK, apart from Value Added Tax which is predominantly the same and charged largely in accordance with the same law that applies in the UK.

The benefit of a completely separate tax system is that the Isle of Man can enjoy low income tax rates of 10% and 20% for individuals and a 0% rate of tax for companies on most income.

 

The tax advantages available to Isle of Man resident individuals and companies are summarised below.

 

The Isle of Man is situated in the heart of the British Isles. The country is an internally self-governing dependent territory of the British Crown.

 

Individuals

The following tax advantages are available for Isle of Man residents.

 

  • Personal tax liability cap of £115,000 per individual with effect from 6 April 2010
  • Tax free allowances for 2010/11 of £9,300 per person (£18,600 for married couples)
  • 10% tax on first £10,500 of income above the personal allowance (£21,000 for married couples)
  • Top marginal rate of income tax of 20%
  • No capital gains tax, inheritance tax or stamp duty
  • Tax relief for interest paid to an Isle of Man lender including mortgage interest, loan interest and overdraft interest up to a maximum of £10,000.

Companies

The following tax advantages are available for Isle of Man companies.

 

  • 0% rate of income tax on most income
  • 10% rate of income tax on income from Isle of Man land and property, eg rents/property development profits, and banking businesses
  • No requirement to deduct withholding tax from most dividend and interest payments to non-residents.