Isle of Man - Economy

Economy

Main article: Economy of the Isle of Man

The Isle of Man is a low-tax economy with no capital gains tax, wealth tax, stamp duty, or inheritance tax and a top rate of income tax of 20%. A tax cap is in force; the maximum amount of tax payable by an individual is £115,000 or £230,000 for couples if they choose to have their incomes jointly assessed. The £115,000 tax cap equates to an assessable income of £589,550. Personal income is assessed and taxed on a total worldwide income basis rather than a remittance basis. This means that all income earned throughout the world is assessable for Manx tax rather than only income earned in or brought into the Island.

The rate of corporation tax is 0% for almost all types of income, the only exceptions are that the profits of banks are taxed at 10%, as is rental (or other) income from land and buildings situated on the Isle of Man.

Offshore banking, manufacturing, and tourism form key sectors of the economy. Agriculture and fishing, once the mainstays of the economy, now make declining contributions to the Island's Gross Domestic Product (GDP).

Trade takes place mostly with the United Kingdom. The island is in customs union with the UK, and related revenues are pooled and shared under the Common Purse Agreement.

The Manx government promotes island locations for making films by contributing to the production costs. Since 1995, over eighty films have been made on the island. The policy has been criticized as unsustainable. Since 2007, the Isle of Man government invested £34 million in the film industry but recouped only £6.3 million, representing a loss of over £27 million.

The Isle of Man Government Lottery operated from 1986 to 1997. Since 2 December 1999 the island has participated in the United Kingdom National Lottery. The island is the only jurisdiction outside the United Kingdom where it is possible to play the UK National Lottery. Since 2010 it has also been possible for projects in the Isle of Man to receive national lottery Good Causes Funding. The good causes funding is distributed by the Manx Lottery Trust. Tynwald receives the 12p lottery duty for tickets sold in the Island.

Read more about this topic:  Isle Of Man

Famous quotes containing the word economy:

    “Wise men read very sharply all your private history in your look and gait and behavior. The whole economy of nature is bent on expression. The tell-tale body is all tongues. Men are like Geneva watches with crystal faces which expose the whole movement.”
    —Ralph Waldo Emerson (1803–1882)

    “Everyone is always in favour of general economy and particular expenditure.”
    —Anthony, Sir Eden (1897–1977)

    “The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. Meddle, and you snap the sinews with your sumptuary laws.”
    —Ralph Waldo Emerson (1803–1882)