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Isle of Man seen to be in better financial shape than UK
| Published: | 4 Mar at 2 PM |
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Following the UK economy’s downgrading by Moody’s to AA1, the Isle of Man’s treasury minister has announced a 3 per cent growth in its economy during 2012.
Rated by Moody’s at AAA and by Standard and Poor’s at AA+, the island’s 2013 economy is expected to grow at 2.8 per cent this year, with unemployment remaining at around 2.6 per cent. Many UK expats hold their savings in the offshore tax haven, with the annual budget speech by treasury minister Eddie Tear sounding a positive note for investors.
The island’s direct taxes, such as company taxes at zero per cent and income tax capped at between 10 and 20 per cent, are significantly lower than in the UK and indirect taxes such as VAT and fuel tax sit at around the same as Britain. As a result, it’s no surprise that it’s an attractive destination for companies as well as expat and UK residents’ funds.
However, from March onwards, the Manx authorities will exchange details of UK residents’ holdings on the island with the UK tax authorities due to a deal made last month. The Inland Revenue has announced a three-year amnesty during which UK residents with undisclosed investments on the island can pay back tax plus a 10 per cent levy to escape prosecution.
Rated by Moody’s at AAA and by Standard and Poor’s at AA+, the island’s 2013 economy is expected to grow at 2.8 per cent this year, with unemployment remaining at around 2.6 per cent. Many UK expats hold their savings in the offshore tax haven, with the annual budget speech by treasury minister Eddie Tear sounding a positive note for investors.
The island’s direct taxes, such as company taxes at zero per cent and income tax capped at between 10 and 20 per cent, are significantly lower than in the UK and indirect taxes such as VAT and fuel tax sit at around the same as Britain. As a result, it’s no surprise that it’s an attractive destination for companies as well as expat and UK residents’ funds.
However, from March onwards, the Manx authorities will exchange details of UK residents’ holdings on the island with the UK tax authorities due to a deal made last month. The Inland Revenue has announced a three-year amnesty during which UK residents with undisclosed investments on the island can pay back tax plus a 10 per cent levy to escape prosecution.
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