Isle of Man slashes tax rate
The Isle of Man government is set to defy Gordon Brown and his stance against companies going off-shore, by radically reducing corporation tax from 20% to zero.
The island expects the move to cost around £20m a year but expects to generate other revenue as more companies move to place their head offices on the island.
Specualtion points to Guernsey and Jersey possibily following the move, which will anger UK Treasury officials already concerned by the number of companies registering off-shore.
According to reports in today’s press the move to a zero coporation tax rate resolves the issue of ‘exempt companies’ status on the island, which already allows companies based there to pay no tax on earnings from outside the Isle of Man.