The Isle of Man (IOM) is a small, self-governing island located in the Irish Sea, approximately 80 miles from Liverpool.
While an understated destination in general, the IOM is nevertheless extremely popular with high-net-worth individuals (HNWIs), entrepreneurs and businesses due to its very generous tax regime.
Here is a summary of the island's different tax laws, as well as a brief rundown of the local lifestyle for those looking to move to the IOM.
Income tax, CGT and inheritance
Individuals and couples receive personal allowances on income tax. Therefore, the first £9,500 single people earn is tax free for the 2014-15 financial year, and this is doubled to £19,000 for married couples.
However, HNWIs receive the biggest benefits, as there is a tax cap on the IOM, meaning there is a maximum payment of £120,000 a year for all residents, regardless of income.
The IOM also has no capital gains tax (CGT) or inheritance tax, making it an excellent location for investors who are looking to sell their property portfolios.
Corporation tax is set at 0 per cent in the IOM, which has made the island popular for trading companies.
There is a 10 per cent rate charged on banking businesses and enterprises that receive income from land and property on the island. This includes property development, renting and leasing, and mining/quarrying.
Resident organisations pay tax on worldwide profits, while non-resident companies are only charged on Manx-sourced income.
The IOM is typically a desirable location for expats originally from the UK, as it offers good education and health services, and extremely low crime rates.
Property prices are also fairly reasonable compared with other European tax havens. On the downside, the cold weather and relative lack of attractions can make other locations with equally lucrative tax laws attractive.
Despite this, the island's political stability, ease of access for EU citizens and strong telecoms and broadband coverage make the IOM an ideal location for companies, particularly e-businesses.