Isle of Man tax question

[Beardy10]

Eric Mc said:

I don't think an Irish Domicile will give you Non-Dom status for UK tax purposes.

I think it does, well it definitely did before they brought in the £30k "fine"...maybe it's changed since then ? I used to work with an Irish guy that was non-dom. He used to get paid his bonus into his "International Pension Plan" which was offshore.

[Eric Mc]

I was speaking to a taxation consultant a while ago (I'm only a mere accountant) and, being Irish, I asked him about my status regarding overseas income. He said that I couldn't be treated as UK non-dom.

Apparently, the treatment was part of an old taxation treaty.

[Beardy10]

Eric Mc said:

I was speaking to a taxation consultant a while ago (I'm only a mere accountant) and, being Irish, I asked him about my status regarding overseas income. He said that I couldn't be treated as UK non-dom.

Apparently, the treatment was part of an old taxation treaty.

Well I know my former colleague was definitely treated as a non-dom. I was advised quite some time ago ( I think we're talking 10 years) that I could have applied for non-dom status if I had wanted to by my tax advisor (my father was Irish)...I chose not to which with hindsight is probably one of my better decisions. Back then it was obviously much easier to get non-dom status, I certainly couldn't claim non-dom status now.

Maybe my former colleague will get asked questions by HMRC in the future !

[Eric Mc]

Having a very quick look at some websites, it does appear that Irish citizens living in the UK have to more or less fulfill the same legal and tax obligations as British citizens in the UK.

There are specific areas in the various treaties bewteen Ireland and the UK which means that Irish citizens are treated differently for "domicile" purposes when compared to other "foreigners".

As ever, matters are not as simple as people might think.

[LC23]

Eric Mc said:

Having a very quick look at some websites, it does appear that Irish citizens living in the UK have to more or less fulfill the same legal and tax obligations as British citizens in the UK.

There are specific areas in the various treaties bewteen Ireland and the UK which means that Irish citizens are treated differently for "domicile" purposes when compared to other "foreigners".

As ever, matters are not as simple as people might think.

Eric - you might want to take another look at this. The UK/Ireland treaty did used to be a little bit different and you didn't get the same rules as a Dom from another country. But EU ruled this "illegal" and it changed back in 2008 I think.

Edited by LC23 on Thursday 27th May 09:07

[Eric Mc]

I might - nothing ever stays still in tax

[LC23]

Eric Mc said:

I might - nothing ever stays still in tax

I know. I work in this area and still find it difficult to keep up with the constant change.

[piebaps]

There's been a lot of rubbish spoken about the Isle of Man on this thread and I just thought a few corrections were needed. As far as tax goes, the best advice for the OP is to speak to a tax professional and get some advice specific to his/her needs.

In general terms though

• There are regular flights year round to various airports throughout the UK.

Liverpool, Belfast (City & Int), Dublin, Glasgow, Edinburgh, Leeds, Newcastle,
Manchester, Birmingham, Gloucester, Southampton, Gatwick, Luton, City, Jersey,
Anglesey & Galway. there are a limited number of direct flights to Paris &
Geneva too.

• There are regular ferry services to Heysham, Liverpool, Dublin and Belfast.

Between Mid sept and Easter however there are no services to ireland.

• There are no residency permits of any kind required and any UK citizen is free

to take up residence any time they choose.

• VAT and National Insurance are fully reciprocal with the UK.

• Income Tax is separate. Tax free allowance £9300 for current year. First £10500

taxed at 10%, remainder at 20% with tax liabilities capped at £100k. There
are no capital taxes.

• Work permits are required unless your line of work is in certain limited

categories. Exemption can be gained by length of residence or by marrying an
existing Isle of Man worker.

• Tax may be lower but cost of living is higher. Utilities are all more

expensive as is the cost of living generally. Property prices are comparable
with the south east of the UK.

• More info @ www.gov.im

• To become resident for tax purposes you must spend 183 days resident in one tax

year. Or you may be classed as resident if you have property available for your
use and you spend on aggregate 90 days per year over a four year period. The
local tax people are fussy about this and will check to make sure you are.

• The Isle of Man tax office has a network of agreements with a variety of

countries (including the UK) by which tax information is shared.

[Eric Mc]

I hope you weren't referring to what I said as being "rubbish"?

[smartie]

So how easy/impossible is it to get a work permit assuning you are skilled/professional with a useful skill? Technicality or no chance?

[Beardy10]

I think if you have a family the IoM is a possibility....the cost of living is MUCH lower than most tax havens having said that it is stuck in the middle of the Irish Sea and I think it would get old quite quickly. If you're single and have a social life I wouldn't think about it personally.

Mate of mine moved there last year (he works in shipping), he has a young family and was previously living in Monaco for five years. He loves the fact he can rent a 6 bedroom house for less than the cost of a 2 bed flat in Monaco and that the stealth taxes (everything costs and arm and a leg) associated with living in Monaco don't exist there. The flip side is the weather is rubbish and if the ferry gets cancelled in the middle of winter the shelves in Tesco's and M&S empty very quickly....