Enjoying political and economic stability and with a sound reputation as one of the world’s premier international financial centres, the Island is an excellent choice of location for banking, fiduciary and investment management services.

For over a millennium, the Island has enjoyed unbroken Parliamentary rule in stark contrast to the turmoil that has afflicted many corners of the world. Tynwald is reputed to be the oldest continuous Parliament in the world and thus can boast an almost unrivalled political continuity. Qualities of stability and security are evident throughout Manx cultural heritage and remain recognisable today.

Geography and Constitution

The Island occupies an enviable position both geographically and constitutionally. Located in the centre of the Irish Sea, it is situated at the very heart of the British Isles. By virtue of its constitutional status, however, it has always remained outside the United Kingdom. The Island is not a member of the European Union, but it enjoys certain privileges through Protocol 3 to the Act of Accession of 1972 and its constitutional link with the English Crown. As a crown dependency the constitutional links remain, but many special features differentiate the Island’s status from the remainder of the British Isles.

Parliament

The Isle of Man’s Parliament is called the Tynwald, reflecting its Viking origins. An upper chamber and lower elected chamber broadly mirror the House of Lords and House of Commons structure of the UK Parliament. The Queen is represented on the Island by her appointee, the Lieutenant Governor. The Island’s Parliament is autonomous and is responsible for establishing the laws of the Island. Although our constitutional differences are important, the development of Manx Law closely resembles that of English Law. Many will therefore find concepts of Manx Trust and Company Law entirely familiar - in marked contrast to other international jurisdictions where development of the legal framework may remain immature or more closely allied to Continental European systems.

International Financial and Business Centre

The Isle of Man has firmly established itself as one of world’s leading international finance and business centres. This status is reflected in its "AAA" sovereign credit rating. Specialising initially in banking, insurance and fund management, it has extended its range of interests into ship management and lately has become an increasingly preferred location for film production.

Security & Protection

For the protection of investors, the Island has developed an effective regulatory regime under the auspices of the Financial Supervision Commission. The Island was the first to receive "designated territory status" under the UK Financial Services Act, granted only to those jurisdictions deemed to provide a degree of protection and regulation comparable to that applicable in the United Kingdom. The Island also has a Depositors' Compensation Scheme which provides protection to depositors in respect of sterling and foreign currency deposits made with Isle of Man banks, should they fail (the amount of compensation payable to each depositor is an amount equal to 75% of the eligible protected deposit liability, subject to a maximum compensation payment to any one depositor of £15,000). Investors can therefore rest assured that their affairs will be conducted in a well-regulated and responsible manner – a vital reassurance and security to many clients who may live far afield and have little or no previous experience of the Isle of Man.

Taxation

The Isle of Man enjoys the benefits of being a low taxation area. There are no capital gains, inheritance or death duty taxes. Non-Manx residents are exempt from Isle of Man Income Tax. Notwithstanding the Island’s tax attractions, it is frequently advisable for prospective investors to ensure that their affairs are structured in a correct manner in order to avoid potentially adverse taxation or other consequences in their own country of domicile or residence. In this respect, there are many local and international accountancy firms on the Island ensuring easy access to expert tax advice. As part of their tax planning, or to provide additional security for their financial affairs, many clients choose to make use of company or trust structures.

More Information

To discuss how we can best meet your Investment Management needs, please contact:

• Richard Stanley
  Tel: +44 (0) 1624 699290