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The Isle of Man as a Wealth Management Centre

1024 576 Wealth Management Services

Peel Castle

Many readers may be familiar with the Isle of Man as a centre for motor-racing i.e. the famous ‘TT’ races or Manx Kippers! You may even be familiar with its Loaghtan sheep or award winning cheeses but how many of you will realise that the Isle of Man is one of the top 5 centres for space commerce or that it has a thriving eCommerce and eGaming industry or recognise it as a top centre for Wealth Management?

Well, it is pleasing to be able to say that, while the Island was relatively late into the financial services boom of the middle and late 20th Century – seeing the benefits of such only shortly before the creation of the digital world that we now know, it’s relatively recent development has had a significant advantage: the Island did not base its growth on an ‘old world’ economic model but took some inspired decisions early on in the age of the digital evolution or, for many of us, a digital ‘revolution’ i.e. the 1990s and 2000s, that have provided a sound, leading-edge platform for much commercial opportunity and wealth creation & management.

The Isle of Man has benefited by virtue of needing to differentiate itself from the other financial centres that grew up in the 1960s, 70s and 80s. As a UK Crown Dependency, located just off the North West coast of England, it has benefitted from the physical location as the closest Crown Dependency to the City of London and the UK finance sector and has been a conduit of much business to the United Kingdom, from listings on the Stock Exchange, to investment related undertakings such as collective investments or property purchases and commercial undertakings. However, merely replicating what the other finance centres did was not likely to provide long term growth opportunities on a sustainable basis and that was certainly evidenced when we saw the fallout from the recent Great Recession. By identifying some (niche) areas where we could punch above our weight, the Island has enabled real value-added economic development and opportunities for entrepreneurs and professional support services alike.

With a physical location in the centre of the British Isles, occupying an area of c500 square kilometres with a population of only 85,000, the Island is well positioned to provide a secure and accessible location from where we can act as a conduit for investment and business into and within the United Kingdom and the European Union, and, for international trade between Asia and North America. Being part of the ‘Common Purse’ arrangement with the UK enables VAT registration for single point of entry to the EU as a whole. Having significant Ship and Aircraft registers, Space/Satellite licensing ability, and, having an extraordinarily large-capacity and robust digital infrastructure with multiple access points allows the Island to offer the latest IT ‘platform’ to commercial operators, including the eGaming sector.

office site

Alongside the ‘digital’ platform i.e. IT and logistics stands the intellectual property opportunities that we can offer clients. Whether UK entrepreneurs wishing to engage in international commerce, international businesses wishing to trade within the European Union, wealthy individuals and families wishing to ensure a lasting wealth legacy (whether for their families or through charitable foundations etc.), the Isle of Man has a wealth of experienced professionals who can advise upon and structure their clients financial and business requirements, from the simplest to the most complex needs. The professional services sector has been dealing with wealthy individuals, families and corporate businesses for decades and the Island’s links with The City of London has ensured that our connections, knowledge and experience spans all areas of wealth creation and retention, whether physical property, in terms of homes, yachts, aeroplanes, intellectual property, in terms of copyright ownership etc, or the areas of family trusts, foundations and other structuring needs or (possibly) more mundane matters such as pensions and financial planning.

The Island has had to be nimble in its approach and has benefitted from a government that has been both proactive and supportive of business and wealth creation, whilst ensuring best practice in terms of adoption and adherence to international legal and taxation standards and professional expectations.

Our door is open to all-comers, large and small, mainstream and niche. We merely seek to offer professional solutions and adopt best practice in fulfilling our clients’ worthy and legitimate needs.

Whatever your financial or business interests and requirements, do take a little time to enquire how we may be able to assist you in your endeavours and see what we may be able to achieve together.

Wilton Wealth Management is an independent team of highly skilled financial advisers. Our fee based planners are experienced in all aspects of advanced wealth management, analysing complex situations and implementing solutions globally. They manage the financial affairs of a range of clients from professionals to individuals with significant family wealth.

The team will work with you to understand your lifestyle, goals, timeframes and financial requirements. Only then will they put a strategy in place to help you to achieve your overall objectives.

We work hard to create long-term relationships. Our ethos is to provide a service that is transparent and focused on tangible outcomes. We will meet you on a regular basis to track your progress and review your planning. If your goals change, as they often do, we will work with you to ensure the strategy changes as well.

 

Marquis 63

Yacht and the Isle of Man: A Perfect Combination

1024 682 Abacus

yacht

A yacht is a significant investment consisting of time, effort and money: placing it in a carefully structured ownership entity can offer a number of benefits, including potential tax and VAT savings.

The decision on where to register your yacht will be driven by where and when you intend to use your vessel. Selecting the right jurisdiction is imperative and with so many registers available, each offering different opportunities, the decision can often be difficult and confusing.

The Isle of Man offers yacht owners and operators the possible advantage of favourable taxation rates along with a secure and well respected register.

The Department of Economic Development is responsible for promoting the registration of yachts, whether owned and operated on-island, or from one of the other appropriate territories. These include member countries of the EU and European Economic Area, along with British Dependant Territories. Furthermore in 2007, the Isle of Man introduced legislation to extend the number of countries for accepted ownership of Manx vessels, such as Australia, The Bahamas, Canada, China, Hong Kong, India, Japan, Liberia, Marshall Islands, New Zealand, Pakistan, Panama, Russia, Singapore, South Africa, United Arab Emirates and the United States of America.

The Isle of Man Shipping Register provides high quality customer service dedicated to fast response times and low charges. The registry is also favourably placed on the much sought after “White List” of the Paris Port State Control Memorandum of Understanding, which reduces the potential for being targeted for inspection by Port State and Customs officials.

The Isle of Man’s stable political and economic environment provides obvious benefits, the additional benefits as a jurisdiction for ship registry are primarily:

  • Manx legislation which includes favourable taxation treatment (both in terms of VAT planning and corporate tax)
  • Operating costs – the low costs involved in operations from the Island (i.e. no annual tonnage tax)
  • The prestige attached to the British Red Ensign which Manx vessels fly, and subsequent entitlement to the support of the United Kingdom Government – including consular services throughout the world
  • A Registry which is prepared to assist the owner in matters relating to safety, prevention of oil pollution, manning and officer certification requirements for the yacht
  • Exceptionally efficient and high personal service standards from an internationally respected registry which is available 24/7.

The beneficial tax regime afforded by the Isle of Man is arguably the most significant benefit. Like the Channel Islands, the Isle of Man has retained a 0-20% tax regime for companies with the standard rate of corporate tax being 0%, and no capital gains tax. The Isle of Man, unlike the Channel Islands, is treated as part of the UK for VAT purposes. It is this unique combination that has primarily made the Isle of Man so attractive for ship registry.

An Isle of Man VAT registered business may enjoy the following benefits:

  • Zero rate corporation tax
  • No capital gains taxes
  • No stamp duty (including on share transfers)
  • Zero rate insurance premium tax on asset insurance (9.5% in the UK)

Some further benefits of registering in the Isle of Man are:

  • Potential for a low effective VAT rate using leasing
  • No inheritance tax or death duties
  • Part of the EU for VAT purposes
  • Independent of UK for direct tax purposes – British Isle but not part of the UK

There are a large number of vessel management and administration businesses on the Isle of Man to cater for the growing demand for Manx registered vessels. These businesses can assist with the likes of ensuring local management and control remains in place, VAT administration, insurance and brokerage arrangements, chartering and all manner of registration and structure maintenance.

As a highly experienced corporate service provider, with significant knowledge in the establishment and administration of structures holding luxury assets, Abacus is well placed to assist private and commercial companies through the complexity of yacht ownership. Clients and their representatives will benefit from a support team that we will assemble to work alongside their family offices and intermediaries, Abacus gives the owner the freedom to enjoy their vessel.

Where VAT may be an issue, Abacus Yachts can offer ownership structures and leasing services that can reduce the effective VAT rate. Working closely with a specialist VAT advisor, we can also facilitate VAT importation of yacht and source professional tax advice to ensure that optimum structuring is used. We offer multi-jurisdictional registration and will assist in finding the most suitable jurisdiction, based on individual needs and requirements.

Abacus offers the experience, skills and contacts to assist with the purchase and administration of yachts, their associated toys and the necessary supplies for its operation. Due to our longevity within the yachting industry, we have built up a good network of reputable providers including those required for insurance needs, and will manage the relationship on your behalf as part of our insurance administration services.

“We can’t stop the waves of change, but we can safely steer you in the right direction”