The Isle of Man

About the Isle of Man

The Isle of Man is an internally self-governing British Crown dependency located in the Irish Sea between Great Britain and Ireland. The Island has been inhabited since before 6,500 B.C., and the Island’s Parliament, Tynwald, is the oldest continuously ruling body in the world. Tynwald has competence over all internal political matters, including taxation.
The Isle of Man is a low-tax jurisdiction, with a 0% corporation tax for most types of corporate income, and a maximum rate of 20% for income tax payable by individuals. There are no capital gains taxes, inheritance taxes, wealth taxes or stamp duties in the Isle of Man. The Isle of Man is one of the few offshore jurisdictions where individuals and businesses have the ability to register for VAT.
The Isle of Man is an established international finance centre with a secure base built upon political stability, economic independence, low taxation and a firmly established fiscal and regulatory environment. The sophistication of the Isle of Man as an international finance centre is fully supported by a modern infrastructure and the Island is one of the few such centres whose government objectives for economic growth are matched by the space and labour resources needed to sustain them.
The emergence of the Isle of Man as a major international finance centre has come about largely as a result of the Isle of Man Government’s willingness to attract business by implementing facilitative legislation where appropriate and refining the existing legal position in other cases. The result is a sophisticated but flexible regulatory environment within which to do business.
The Isle of Man Government has introduced new investment and taxation vehicles, together with a new and dynamic taxation strategy. Additionally, to encourage inward investment further, the Isle of Man Government has embarked upon a strategy to establish the Isle of Man as a leading e-commerce platform in the offshore world.
Modern infrastructure coupled with experienced professional services mean the Isle of Man is a mature financial centre offering low establishment and operating costs in an attractive tax environment.
Domestic stability, a robust regulatory framework and a willingness not only to adapt to developments in international politics but also in many areas, such as international taxation, to lead the way in establishing best standards, have helped the Isle of Man to achieve its reputation as a place where clients are confident to do business. The Isle of Man is on the OECD “whitelist” of offshore jurisdictions and its economy has over two decades of growth.

The Isle of Man Legal System

The Isle of Man is a separate jurisdiction to the United Kingdom and as a result has its own legal system. The principles of the Manx legal system are based on English common law and the Island follows very closely the precedents set by the English Courts and the Courts of other commonwealth countries, if there is no conclusive Manx precedent already established. However, Manx law has also developed to fit the Isle of Man’s own needs and circumstances, particularly in relation to tax, company law and financial supervision issues. The main sources of Manx law are based on the Acts of Tynwald and their subsidiary legislation.
The Isle of Man’s High Court judges are called Deemsters (a term dating from the Viking age), who have jurisdiction over all criminal and civil matters on the Island. The first Deemster is the head of the Isle of Man judiciary. The Island also has its own Magistrates, whose roles are similar to their English counterparts. There is a local Court of Appeal called the Staff of Government Division. Since January 2015, Channel Islands’ Judges are eligible to sit as Appeal Judges in the Isle of Man, and Isle of Man Judges are eligible to sit as Appeal Judges in the Channel Islands. The final Court of Appeal is the Judicial Committee of the Privy Council, who sit in London.
The Isle of Man’s legal profession is regulated by the Isle of Man Law Society. Legal professionals qualified in the Isle of Man are called Advocates. Advocates fulfil the roles of both Solicitors and Barristers in England and have exclusive rights of audience in the Manx Courts. It is possible for English Barristers to be granted a temporary licence to appear in Manx Courts but this will only be granted in exceptional circumstances.