Isle Of Man Government Seeks New Finance Industry Players

by Jason Gorringe, Tax-News.com, London

09 July 2004

The Isle of Man Treasury is seeking parliamentary approval for a new scheme designed to attract more businesses to the jurisdiction’s financial sector, according to the local media.

The plan is to set up an investment assistance scheme for the finance industry, similar to one which exists for manufacturing firms, which will have an initial budget of £300,000 drawn from the tax strategy requirement fund, the Isle of Man Online reports.

Treasury Minster Alan Bell stated that the proposal comes partly in response to requests from within the finance industry, but is also a recognition of the fact that the offshore world is becoming ever more competitive in the light of regulatory changes.

“The timing of this scheme is absolutely right in terms of responding to the ‘new world order’. The initial feedback we've had from those who are aware there is a scheme in the pipeline has been quite positive,” commented Mr Bell.

“We have to recognise that we are in a very competitive world...the European Union savings directive is going to have an impact on a number of offshore centres...(and the scheme) may help us attract business which may want to migrate from less-well regulated areas,” he observed.

The scheme could allow new firms a grant of up to 50% on third party costs associated with start-ups in the first two years in areas such as accounting, legal advice and consulting.

It is likely to be open to all classes of firms in the finance industry, provided they employ local staff and agree to be licensed by the regulatory authorities. Captives staffing their own operations will also be permitted to apply.

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