At last week’s press briefing, IoM finance director John Spellman said the UK has displaced a pool of highly entrepreneurial and wealthy corporates due to recent tax regime changes.
He said: “They destabilised some very significant companies in the UK, such as reinsurance companies and captive insurance companies, and these international businesses are looking to relocate.”
Spellman said it is not the island’s policy to chase this business as it would be seen to be undermining the UK’s tax regime. He said: “It is an att- rition unfortunately by the Chancellor. When you put basic rates up to 50 per cent and you change the basis of corporation tax you unsettle the resident non-doms. You do not gain tax revenue, you displace them.”
AES International managing director Sam Instone says: “We have had at least 10 people contact us to say they are fed up and are going to move overseas because of high tax, mostly to Dubai. They are all young entrepreneurs who own their own businesses, particularly in financial services.”