The Wave - New Project For Old Summerland Site

[code99]

3 hours ago, Nom de plume said:

We need the next administration to prioritise the housing sector if this Island is to move forwards. Some very uncomfortable policy decisions to be made.

In the IOM a large contingent of residential property investors are buyers from the UK, who are buying up IOM properties for various reasons e.g. hoping that by investing here their UK kids will inherit their assets free of UK Inheritance Tax (IT). I reckon that even a Tory Chancellor/ HMRC will eventually twig as to what is going on and will make some adjustments. As with the proposed universal 15% corporation tax, they could simply legislate that if a UK resident inherits an asset in a place with zero IT, then this transaction will be assessed as if the asset was located in the UK, hence UK tax rate(s) would apply. I realise that this idea might sound a bit far-fetched, but never say never because the ‘Covid bill’ has to be paid for somehow.  Should this change occur, then the UK investors’ demand for the IOM properties would plummet, our house prices would fall and the local people would be able to purchase their own homes without mortgaging their guts and soul for eternity.

Of course, the next IOM administration could always go down the route of the CIs, Australia, New Zealand and ‘significant others’ where foreigner property byers are either severely restricted or prohibited outright from investing in local residential property markets. This initiative would also have a price-supressing impact, and would therefore make IOM residential properties more affordable. Clearly, if the IOM population grows, then this measure alone will not be adequate to solve the housing affordability problem, and more social houses will have to be built.

One of the options is to re-develop 'brown sites' or dilapidated buildings, even by a way of ‘compulsorily acquisition’ by the IOMG, and/or penalising property owners who refuse to cooperate. Needless to say, taxpayers’ money would be required to make this idea work. My concern is that if history repeats itself, then the next administration could be just as easily capable of squandering taxpayers’ cash as the present administration. Where are we, as a community, then?

[Flyingfemme]

UK residents are Inheritance taxed on worldwide assets. The only way to avoid this is to actually be IOM resident.

[Gladys]

2 minutes ago, Flyingfemme said:

UK residents are Inheritance taxed on worldwide assets. The only way to avoid this is to actually be IOM resident.

Or set up a trust/company structure. 

[John Wright]

1 hour ago, Flyingfemme said:

UK residents are Inheritance taxed on worldwide assets. The only way to avoid this is to actually be IOM resident.

UK domiciled, not resident. Being non dom is still effective for assets outside UK for inheritance tax. So lots of the HK Chinese, as an eg,  on the special visas will have assets spread across Singapore, IOM or CI, Middle East and property in UK. They’ll declare intention to remain HK domiciled. Make Will or declaration saying return body to HK.

They may never buy in UK, just rent. No assets there. No probate or capital taxes office clearance. Separate will for each asset jurisdiction.

[The Voice of Reason]

2 hours ago, Flyingfemme said:

UK residents are Inheritance taxed on worldwide assets. The only way to avoid this is to actually be IOM resident.

Inheritance tax is a fair tax and one that the IOM should adopt ( with an appropriate tax free threshold)

You come into this world with nothing and leave it with nothing. 

Leave what you have to help fund the needs of the greater populace not just your issue or others you may name in your will. You have probably given them more than enough of a handout during your lifetime.

You may have worked hard all your life to accumulate wealth ( or even inherited it yourself) but why should that be reserved for a precious few?

It is the way society is structured that has enabled you to have that wealth. 

Give it back to society and future generations.

[Max Power]

6 hours ago, Nom de plume said:

There is no appetite for leisure or commercial developers to invest here whilst our population is so small & house prices so high (and spiralling).

We need a huge increase in footfall everywhere but I'm afraid our housing policy has killed everything. We will remain stagnant for decades.

Sorry.

We need a university here to give us a young and vibrant temporary population, the economic benefits would be a boost for locals and tourism!

[Phillip Dearden]

2 hours ago, Flyingfemme said:

UK residents are Inheritance taxed on worldwide assets. The only way to avoid this is to actually be IOM resident.

UK Domiciliaries are Inheritance taxed on worldwide assets. One way to avoid this is to become IOM domiciled and live long enough to escape "deemed domicile" and to hold no UK assets.

[Phillip Dearden]

2 hours ago, Gladys said:

Or set up a trust/company structure. 

Gifts to trusts are subject to IHT and if the donor can benefit he may be subject to a "Gift with Reservation" ie treated as if he still owns the trust assets so this one needs careful thought.

[Gladys]

13 minutes ago, Max Power said:

We need a university here to give us a young and vibrant temporary population, the economic benefits would be a boost for locals and tourism!

That is exactly what I was discussing with someone the other day.  A proper university with proper courses and student facilities.  Not sure it will happen or if we could attract non-IOM students, not to mention be the preferred choice for Manx students eager to sample the bright lights. 

[Gladys]

4 minutes ago, Phillip Dearden said:

Gifts to trusts are subject to IHT and if the donor can benefit he may be subject to a "Gift with Reservation" ie treated as if he still owns the trust assets so this one needs careful thought.

Thanks Phil.  I know its a minefield and needs proper advice, but the point I was making is that property ownership for tax reasons is likely to be in a structure not Joe Soap just buying a property here, and a structure costs. 

[Max Power]

11 minutes ago, Gladys said:

That is exactly what I was discussing with someone the other day.  A proper university with proper courses and student facilities.  Not sure it will happen or if we could attract non-IOM students, not to mention be the preferred choice for Manx students eager to sample the bright lights. 

It could be the preferred choice for students eager to get away from the bright lights though, or their parents?

We may even have our own bright lights?

Edited July 26, 2021 by Max Power

[Roger Mexico]

21 minutes ago, Max Power said:

We need a university here to give us a young and vibrant temporary population, the economic benefits would be a boost for locals and tourism!

Of course we (a bit of) for over 100 years and lost it because the Manx Government were unwilling to support it in any way.  But the truth is that the best time to develop a university here was 50 years ago.  Indeed it was suggested then and the idea was greeted with horror by all the local establishment who didn't want all those clever people with their fancy learning around.  And it might interfere with the TT.

Since then the things that would have been advantages (lots of out of season accommodation) have gone and the university boom of the last two decades looks on its way out.  It's not a solution now.

[code99]

32 minutes ago, Phillip Dearden said:

Gifts to trusts are subject to IHT and if the donor can benefit he may be subject to a "Gift with Reservation" ie treated as if he still owns the trust assets so this one needs careful thought.

 

22 minutes ago, Gladys said:

Thanks Phil.  I know its a minefield and needs proper advice, but the point I was making is that property ownership for tax reasons is likely to be in a structure not Joe Soap just buying a property here, and a structure costs. 

Thank you for clarifying. I thought if a non-UK property was purchased by a UK resident via a non-UK company which is held in an offshore/non-UK domiciled trust, then the actual asset i.e. non-UK property is not subject to IHT...sorry my fault.

[Gladys]

5 minutes ago, code99 said:

 

Thank you for clarifying. I thought if a non-UK property was purchased by a UK resident via a non-UK company which is held in an offshore/non-UK domiciled trust, then the actual asset i.e. non-UK property is not subject to IHT...sorry my fault.

It is very complex, as most tax rules are because when a loophole is found it is plugged, then another loophole, plugged and so on until you have, literally, volumes of rules, and lots of exceptions and exemptions. 

What you describe is something that non-doms would do before becoming UK tax resident, the difficulty is to preserve the non-dom status (I know of one such client who decided to buy a burial plot in London which had all the advisers face palming at all their hard work in establishing a complex structure ruined in one stroke!).    

A UK taxpayer may buy property here, not for tax reasons but because it is a good investment or suits them for some other reason. 

 

[code99]

24 minutes ago, Gladys said:

It is very complex, as most tax rules are because when a loophole is found it is plugged, then another loophole, plugged and so on until you have, literally, volumes of rules, and lots of exceptions and exemptions. 

What you describe is something that non-doms would do before becoming UK tax resident, the difficulty is to preserve the non-dom status (I know of one such client who decided to buy a burial plot in London which had all the advisers face palming at all their hard work in establishing a complex structure ruined in one stroke!).    

A UK taxpayer may buy property here, not for tax reasons but because it is a good investment or suits them for some other reason. 

 

Thanks Gladys. I guess the new Duke of Westminster (and his accountants) can avail loopholes...

https://www.theguardian.com/money/2016/aug/11/inheritance-tax-why-the-new-duke-of-westminster-will-not-pay-billions