Speaking at a press briefing in the Isle of Man this morning, IoM finance director John Spellman said the UK had displaced a pool of highly entrepreneurial and wealthy corporates due to changes to its tax regime.
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. However, he said the Manx tax structure had proved to be a “magnetic pull” for some of these companies.
He said: “It is an attrition 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 don’t gain tax revenue – you displace them into other tax locations.”