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Manx Govt questions UK Chancellor’s Budget changes

The Isle of Man Government has questioned Budget changes to the UK tax regime, claiming they will displace the resident non-domiciled population.

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.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Budget Changes
    Unfortunately, I don’t think Mr Darling is worried about the tax-take or the negative impact on the UK economy, he’s setting his policy based on the old labour tradition of atacking the rich and hoping this will be a vote winner.

    I wouldn’t waste time trying to find any economic sense in his proposals. That would be like trying to find economic sense in abolishing the 10% tax rate or causing businesses to spend millions to reduce VAT by 2.5%. In all these cases it makes no economic sense whatsoever. They’re all politically motivated policies, not sensible economics.

  2. New 50% tax threshold
    Spellman is correct. The new tax threshold and pension tax grab is already undermining the UK’s high earners. Applications and enquiries for Jersey and Guernsey residence are up.

    We also have clients in the film industry who are relocating their businesses. The next Government have one heck of a mess to clean up from this lot.

  3. MANX ATTACK UK GOVERMENT
    spellman should keep his nose out of uk tax regime, also goverment should make a list of uk companies that pay there full uk tax and encourage trade with these companies. the isle of man has been nothing but a drain on uk with regards to health service etc.

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