IOM Business Consultancy - Corporate & Private Clients

About Isle of Man

The Isle of Man is a self-governing British Crown dependency located in the Irish Sea, which occupies an area of 588 sq. km (277 sq. miles) and has a population of c. 85,000. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann, but constitutionally the island has never been part of the UK. The UK government is responsible for the island’s defence and foreign affairs, while Tynwald, the Isle of Man parliament, is responsible for it domestic affairs including taxation. The Island issues its own notes and currency, the Manx pound, which is on a par with the UK pound and is interchangeable with UK currency.

Financial services, manufacturing and tourism are the key sectors of the economy. The Isle of Man is a low-tax economy with no capital gains tax, withholding tax, inheritance tax or wealth tax. The top rate of income tax is 20% subject to a tax cap of £200,000 for individuals and £400,000 for a married couple. Personal income for resident individuals is assessed and taxed on a total worldwide income basis; non-resident individuals are taxed on Isle of Man-source income only.

Corporate Services

The Isle of Man has an international reputation as a tax-efficient, responsible and dynamic jurisdiction, complying with global standards for tax co-operation and exchange of information. The Island has a standard zero rate of corporate tax and a modern Companies Registry. The Isle of Man is a leading jurisdiction for the formation of all types of corporate entities, including companies, foundations, limited partnerships and limited liability partnerships. Isle of Man entities can be used for all types of business including holding and trading companies, estate and succession planning, family office, funds, local and international property holding and insurance. Sovereign offers company formation and management in the Isle of Man across all business areas and corporate structures, together with the administrative support to maximise opportunities and achieve long-term sustainability. These range from full back-office solutions to assistance with compliance in respect of regulatory, tax and economic substance rules.

Private Client

Sovereign’s Private Client services assist families and entrepreneurs around the world to structure their assets to support personal, family, commercial and charitable interests. Sovereign has the depth of technical expertise to identify and create the optimum solution for our clients’ needs, whether that be asset protection, estate or succession planning. Sovereign can advise on all aspects of the design and implementation of structures from a broad range of vehicles in the Isle of Man: from trusts and underlying company structures for UK families, to more complex structures involving trusts, companies and limited partnerships for international high net worth families. The Isle of Man has a clear and simple tax regime with no capital gains tax, withholding taxes, inheritance or wealth taxes. An income tax cap of £200,000 has attracted a number of wealthy residents to the island. The Isle of Man is also an attractive base for the registration of aircraft, as well as commercial and pleasure yachts.

Retirement Planning

An established centre of excellence for international retirement benefit plans, the Isle of Man specialises in all aspects of international pension planning, from large multinationals to individual clients. It also offers a tax neutral environment in which the assets of a scheme can grow free of taxation and, on drawdown, are paid to scheme members gross. Sovereign Pensions offers a full range of multi-member retirement benefit solutions from the Isle of Man, including two Qualifying Recognised Overseas Pension Scheme (QROPS), a Qualifying Non-UK Pension Schemes (QNUPS) and four Self-Invested Personal Pensions (SIPPs). The Island’s pensions regulations are robust but highly flexible, allowing corporate clients the freedom to tailor international retirement solutions to the diverse demands of their international operations. All plans can be tailored to fulfil the objectives of the scheme sponsors and members.

Get in Touch

Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.