THE Isle of Man is planning to increase its already large number of tax exiles by imposing a cap on income tax.
[box]The Irish Sea island, famous for its annual TT motorbike race, is keen to attract high net worth individuals who want to reduce their income tax liabilities.[/box]
Treasury Minister Allan Bell said he wanted to cap the liabilities in order to encourage further business opportunities to the island in its 2005/06 budget.
A consultation paper will be launched this year to discuss at what level the cap will be set. The IoM assessor of Income Tax Malcolm Couch said: ‘We want to create a friendly, flexible tax environment, but in a modern framework that meets all international regulations.’
He added: ‘We want to attract the high net worth entrepreneurial types. Not only do they increase spending in the local shops and restaurants, their entrepreneurial spirit also comes through and they may start up businesses on the island.’
The island is already popular with wealthy tax exiles from the North West because of its 18% maximum rate on income tax of a resident’s worldwide income.
Businesses are also set to benefit under the island’s increasingly generous tax regime. Bell said a zero rate of income tax would be extended to manufacturing, film, online gaming, tourist accommodation, agriculture and fishing.
Insurance, fund management, space and satellite technology and shipping already enjoys the benefit.
The Minister said: ‘The Isle of Man is an international business and finance centre with a diverse, dynamic economy. We believe in encouraging enterprise to generate jobs and income for our community.’
By Michael Clarke
Source: This is London