Would You Consider Moving Offshore?

The UK Governments recent announcement of a top rate of tax of 50% for anybody earning over £150,000 a year is sure to cause strong feelings amongst the contractor community. Could a move that the bureaucrats see as raising tax revenue actually result in a reduction as a steady flow of high earners and their associated businesses are moved out of the UK?

The offshore islands that surround the UK have long looked to attract these sort of high earners and this could be the push that many need. Where is the incentive of working when half your money is taken at source? Top amongst the offshores targeting these individuals is the Isle of Man. Having a top rate of tax of only 18% may well be incentive enough for many entrepreneurs/contractors/business owners to consider the Isle of Man an attractive proposition. But when you also take into account a tax cap that limits an individual from paying more than £100,000 in personal income tax it suddenly becomes very attractive to the very rich. Besides the financial reasons the offshores offer much to the UK resident looking for an escape from Gordon Browns hatred of private business. Not least being a level of safety and quality of life that far surpasses anywhere in the mainland UK.

Whilst it’s still early days yet there are already some very big names in UK business contemplating the move, would you consider following?

“ONE of Britain’s best known entrepreneurs is reportedly considering relocating to the Isle of Man.
Peter Hargreaves is one of the UK’s super rich residents who has been angered by Alistair Darling’s decision to impose a 50 per cent rate of income tax on annual earnings of £150,000-plus.

He is the co-founder of Hargreaves Lansdown, the financial advisor, and could lead an exodus of high earners out of the UK.

Hargreaves, whose net worth is estimated at £230million, says he’s looking at the Isle of Man as a potential new home. It’s estimated that 350,000 high earners are affected by the tax.

The Isle of Man has been actively encouraging the immigration of high net worth individuals for some time.

There is a tax cap on total income tax payable per person of £100,000 or £200,000 for a married couple, alongside a drive to provide the sophisticated facilities entrepreneurs expect.”

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