Tax Migrants.. To The Isle Of Man! (why?)

[ham]

I posed a similar question to this in another thread, but thought perhaps it could provoke a lively enough response to warrant its own thread, so here goes..

UK top rate of tax to be raised to 50% for the top earners.. some of them are taking great umbrage and have been loudly announcing that they would take themselves and their wealth out of the UK. Isle of Man has been recognised by some as a potential place to move to, but..

 

1. Is saving tax enough of a justification to move to the Isle of Man?

2. What is the effect on the local population of rich people moving here primarily for tax reasons?

3. What are these tax migrants going to be doing while they are here to keep themselves earning in the manner to which they have become accustomed?

4. Anything else anyone wants to throw in on the subject...

[fubar]

I posed a similar question to this in another thread, but thought perhaps it could provoke a lively enough response to warrant its own thread, so here goes..

UK top rate of tax to be raised to 50% for the top earners.. some of them are taking great umbrage and have been loudly announcing that they would take themselves and their wealth out of the UK. Isle of Man has been recognised by some as a potential place to move to, but..

 

1. Is saving tax enough of a justification to move to the Isle of Man?

2. What is the effect on the local population of rich people moving here primarily for tax reasons?

3. What are these tax migrants going to be doing while they are here to keep themselves earning in the manner to which they have become accustomed?

4. Anything else anyone wants to throw in on the subject...

 

You are Bellyache/pimpernel007 and I claim my £10!

[When Skies Are Grey]

*gets kettle on pulls up a seat

[Cambon]

I think a lot of the attraction is it simplifies tax affairs for them.

 

Basically, if you are single, mega rich and earning over £500k a year, all you need to do over here is write the government a cheque for £100k. No need to fill in a return or declare where the income is coming from. No need to pay a fortune to a team of accountants to try to limit your tax liabilities, just one straight forward payment.

[wazir]

I posed a similar question to this in another thread, but thought perhaps it could provoke a lively enough response to warrant its own thread, so here goes..

UK top rate of tax to be raised to 50% for the top earners.. some of them are taking great umbrage and have been loudly announcing that they would take themselves and their wealth out of the UK. Isle of Man has been recognised by some as a potential place to move to, but..

 

1. Is saving tax enough of a justification to move to the Isle of Man?

2. What is the effect on the local population of rich people moving here primarily for tax reasons?

3. What are these tax migrants going to be doing while they are here to keep themselves earning in the manner to which they have become accustomed?

4. Anything else anyone wants to throw in on the subject...

 

1. Yes. £100k tax cap per person. So if you earn £1m or more it's well worth it.

 

2. Good and bad. Lots of revenue for tax man. Local spending helps economy. Finance industry benefits from giving advice and doing accounts etc which is backbone of the economy. However, some speculate this drives house prices up. Others say it doesn't because there are really two housing markets here (one for locals and one for wealth migrants). Doesn't really affect health service since they will tend to be private anyway so nothing too bad for the Daily Mail readers to get excited about.

 

3. They needn't necessarily be here all the time. The IOM is happy for them to be resident without investigating how long they spend here. The main thing is they don't get trapped in any other tax system (main one being UK rules which are now ridiculous including any days whatsoever traveled to the UK for business could make you taxable). So they can travel off to fun places where there are things to do. Otherwise it can be a bit of a struggle here even with things like Coutts House trying to create a habitat for them.

 

4. Not me.

[Keith brief]

I posed a similar question to this in another thread, but thought perhaps it could provoke a lively enough response to warrant its own thread, so here goes..

UK top rate of tax to be raised to 50% for the top earners.. some of them are taking great umbrage and have been loudly announcing that they would take themselves and their wealth out of the UK. Isle of Man has been recognised by some as a potential place to move to, but..

 

1. Is saving tax enough of a justification to move to the Isle of Man?

2. What is the effect on the local population of rich people moving here primarily for tax reasons?

3. What are these tax migrants going to be doing while they are here to keep themselves earning in the manner to which they have become accustomed?

4. Anything else anyone wants to throw in on the subject...

 

1. Yes. £100k tax cap per person. So if you earn £1m or more it's well worth it.

 

2. Good and bad. Lots of revenue for tax man. Local spending helps economy. Finance industry benefits from giving advice and doing accounts etc which is backbone of the economy. However, some speculate this drives house prices up. Others say it doesn't because there are really two housing markets here (one for locals and one for wealth migrants). Doesn't really affect health service since they will tend to be private anyway so nothing too bad for the Daily Mail readers to get excited about.

 

3. They needn't necessarily be here all the time. The IOM is happy for them to be resident without investigating how long they spend here. The main thing is they don't get trapped in any other tax system (main one being UK rules which are now ridiculous including any days whatsoever traveled to the UK for business could make you taxable). So they can travel off to fun places where there are things to do. Otherwise it can be a bit of a struggle here even with things like Coutts House trying to create a habitat for them.

 

4. Not me.

 

Nicely put.

[TheBloodyNine]

I posed a similar question to this in another thread, but thought perhaps it could provoke a lively enough response to warrant its own thread, so here goes..

UK top rate of tax to be raised to 50% for the top earners.. some of them are taking great umbrage and have been loudly announcing that they would take themselves and their wealth out of the UK. Isle of Man has been recognised by some as a potential place to move to, but..

 

1. Is saving tax enough of a justification to move to the Isle of Man?

2. What is the effect on the local population of rich people moving here primarily for tax reasons?

3. What are these tax migrants going to be doing while they are here to keep themselves earning in the manner to which they have become accustomed?

4. Anything else anyone wants to throw in on the subject...

 

1) That depends on the person.

 

2) Considering the incoming VAT agreement with the UK that is based on per head capita earnings having on high net worth individual can be worth dozens if not hundreds of standard workers. Having lots of high net worth individuals means lots of extra income from the VAT scheme. Also high earns buy things thus adding to the economy, they tend to have private health and pensions and so add very little extra burden on local services. People with lots of money like big houses big houses need lots of planning and lots of building, in a period where the is less building work generally having a few millionaires building their big houses will keep the construction sector profitable meaning builders, structural engineers and architects are employed rather than being on the dole. With some of the super rich they have properties of such magnitude that they will be employing staff to run them more people potentially off benefits. Are there any negatives?

 

3) Who really cares as long as they do.

 

4) People with money are good for the economy.

[wazir]

Are there any negatives?

 

Foreign people talk funny and have strange ways about them.

[TheBloodyNine]

Are there any negatives?

 

Foreign people talk funny and have strange ways about them.

 

 

True but so do us Manx.

[manxman8180]

......People with lots of money like big houses big houses need lots of planning and lots of building, in a period where the is less building work generally having a few millionaires building their big houses will keep the construction sector profitable meaning builders, structural engineers and architects are employed rather than being on the dole........

The current problem being that there are not enough houses for the 'elite' and our archaic planning system, outdated area plans etc make it near impossible for people to get approaval to develop their own residence in their preferred area.

 

Guernsey is mopping up these types of people with glee, while we miss the golden opportunity.

[Tempus Fugit]

Are there any negatives?

 

it pushes up the price of housing and local folk end up leaving their homeland in order to get somewhere to live (like the Lake District etc.)

[bellyup]

Are there any negatives?

 

Foreign people talk funny and have strange ways about them.

 

:)

[wazir]

Are there any negatives?

 

it pushes up the price of housing and local folk end up leaving their homeland in order to get somewhere to live (like the Lake District etc.)

 

I think that this point is valid but the main factor controlling house prices has always been salaries and availability of work.

 

For example, it's cheaper to live in Ramsey or Port St Mary than Douglas. Perhaps Ramsey and Port St Mary are nicer than Douglas, but there isn't as much work. It's cheaper still to live in say Barrow, but then again, there isn't any work.

 

I think these two issue are really inseparable. Either you have lots of work and expensive houses (so locals have to live in the outskirts) or you have cheap houses but then high unemployment and all the downsides that go with that. Take London for example and compare it with say Barrow (again). One has low house prices and few job, the other has high house prices and more jobs which would be better to live in?

 

Ultimately it depends on what you are looking for, but I would be cautious of saying that discouraging economic migrants would be better because it might lower house prices. Because if you have a nice area with jobs people want to live there and so living conditions increase but so too does the cost of housing.

[TheBloodyNine]

......People with lots of money like big houses big houses need lots of planning and lots of building, in a period where the is less building work generally having a few millionaires building their big houses will keep the construction sector profitable meaning builders, structural engineers and architects are employed rather than being on the dole........

The current problem being that there are not enough houses for the 'elite' and our archaic planning system, outdated area plans etc make it near impossible for people to get approval to develop their own residence in their preferred area.

 

Guernsey is mopping up these types of people with glee, while we miss the golden opportunity.

 

 

I agree that our planning system is shocking however there are a few houses for the "Elite" being built, and the planning has been relatively simple to get. It is actually easier to get planning for these types of properties than in a lot of areas of the UK.

 

it pushes up the price of housing and local folk end up leaving their homeland in order to get somewhere to live (like the Lake District etc.)

 

But it don’t, not the people I'm talking about any way. I'm talking about the people buying/building £20m plus houses on the island, they have no bearing on the normal domestic market. The thing that drives up houses prices to an excessive extent is the people with a decent income who get massive mortgages to pay over the odds for Dandara’s £500k homes that are worth £300k at a push.

 

 

Also as Wazir points out its down to the desirability of the area and the availability of work.

[manshimajin]

The other big market must be wealthier retirees from the UK and Ireland. You don't have to be thousands of miles from your children and grandchildren, crime rates is very low, a good lifestyle, no CGT and IHT. Don't have to have work but there are quite good opportunities for pastimes.