Tax CapThe Isle of Man offers an optional tax cap of £175,000 per annum, making the Isle of Man one of the most tax efficient places in the UK.
Alongside tax benefits including 0% capital gains, 0% corporate income tax and 0% inheritance tax, the Isle of Man offers a Tax Cap for new and existing resident individuals of £175,000 per annum, specifically introduced for those who have annual income such that their tax liability would otherwise exceed the Tax Cap.
Individuals who are resident in the Isle of Man for income tax purposes are able to benefit from the tax cap, and the maximum liability for a jointly assessed couple is £350,000. A valid tax cap will remain in force for five consecutive years.
The Tax Cap amount is due and payable on 6 January in each tax year for which an election applies. Alternatively, for those who are looking for flexibility without a 5 year cap election, the standard and higher personal tax rates are some of the lowest in Europe.
Standard rates are 10% and higher is 20%, with the first £14,000 per annum completely tax free.