Questions

Frequently Asked Questions

Is the Isle of Man part of the United Kingdom?

A. No. It is a crown dependent territory but it is a completely separate legal jurisdiction. Geographically, it is part of the British Isles.

Is a Court Order from England enforceable in the Isle of Man?

A. Generally no - without further Manx Court Order. The Isle of Man High Court of Justice is the Court of competent jurisdiction for the Isle of Man. But there are reciprocal arrangements as to registration of Judgments. Specific advice must be sought in each individual case.

Do Manx Courts follow, by way of precedent, decisions of the Courts of England and Wales?

A. We are a common law jurisdiction. Decisions of the Courts of England and Wales, particular the Court of Appeal and the House of Lords, are regarded as being highly persuasive before the Manx Courts, and in the absence of a Manx authority on a specific point, or a unique condition, the Courts will look to follow clear English precedent.

Is the Isle of Man a low tax area?

A. Being a separate legal jurisdiction the Isle of Man has its own tax laws. Taxation rates are generally lower than in the UK. However the Island should not be viewed as a haven. It has high standards of fiscal morality and a strict anti-money laundering code.

What is the difference between the Isle of Man and, say, offshore jurisdictions in the Caribbean or Pacific?

A. The weather and the fact that the Isle of Man has been at the forefront of financial regulation historically and at present.

I have heard of Isle of Man Companies. What are these?

A. It is possible to incorporate both private and public limited companies. These may be limited by shares, by guarantee or by a combination of the two. Unlimited companies may also be created. International, Exempt and Resident income tax status in the Isle of Man may be available to companies incorporated in the Isle of Man. In addition, Limited Liability Companies (LLCs) may be formed. It is also possible to form general partnerships and limited partnerships. Both LLCs and limited partnerships may apply for International tax status in the Isle of Man. Remember that there are no capital taxes in the Isle of Man, and no separate corporation tax regime. Tax is levied on these structures at 10% on the first £100,000,000.00 of their taxable income, with the excess taxed at 18%, unless one of the special taxation statuses is adopted.

I have heard of the mutual funds industry in the Isle of Man. What is available?

A. Collective investment schemes are well regulated in the Isle of Man. There is a wide range of unit trusts and OEIC's. There is also a recently introduced expert investor fund.

Is there any asset protection legislation in the Isle of Man?

A. No. All properly formed Isle of Man Trusts are asset protective and have been since the passing of the Fraudulent Assignments Act 1736.

Is the Isle of Man a member of the Organisation for Economic Co-operation and Development (OECD)?

A. Yes. As a member, financial products and related services have access to markets where OECD membership is an entry requirement.


NB: None of the above guidelines should be construed as the giving of legal advice. You should seek professional advice on any particular questions.

 

 

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