Moving to the Isle of Man? Here’s a few top tips.
If you’re thinking of moving to the Isle of Man, we can certainly understand why. With almost full employment, it’s a beautiful, safe environment to bring up children, with excellent schools and infrastructure. For those that have “been there and done that”, and want to retire to a more relaxed way of life, the local community is very welcoming and you will not be short of things to do.
You will probably be aware of the Island’s rich history, including of course the world famous TT races. You may also be aware that the Island is not part of the UK. We have our own legal and tax system, with a top rate of income tax of 20%.
As one of the Island’s most respected firm of Chartered Financial Planners, we regularly see people who are excited about moving here, but want to know how much tax they will pay and how their investments and pensions might work.
They are wise to seek advice, as there are a number of things to be aware of, including the following:
-A UK personal pension (or SIPP) does not carry automatic entitlement to a 25% tax free lump sum, as is the case in the UK
-Income from UK final salary pensions and annuities would be taxed in the UK and also in the Isle of Man, unless the correct paperwork is submitted
-Care needs to be taken when making withdrawals from investment bonds, as they don’t follow the same tax rules as the UK
-ISA’s will no longer be tax free
-Some UK based providers of investment products do not allow Isle of Man residents to hold their products.
These issues can however be planned for and overcome, allowing you to benefit from the Island’s low tax regime, which includes no capital gains tax, stamp duty and inheritance tax.
If you have recently moved to the Island or are thinking of doing so, please get in touch. We’ll be very happy to help with any questions and put your mind at rest.