The Manx government is waiting for clarification on its UK counterpart’s plans for non-dom tax status and carried interest.
John Wannenburgh (Douglas North) asked Enterprise Minister Tim Johnston what plans his department has to market financial services to affected individuals.
Tory Chancellor Jeremy Hunt had announced plans to axe non-dom status by April 2025,
Full clarification of the new Labour Government’s plans is awaited, including timelines for implementation.
Enterprise Minister Tim Johnston
However, Mr Johnston said this was “effectively abandoned since the Finance Bill was stripped of the relevant clauses as it was accelerated through the legislative process prior to the dissolution of Parliament”.
Labour, for its part, indicated that it would implement further restrictions including the inheritance tax treatment of UK assets held in offshore trusts.
Mr Johnston said: “In respect of Labour’s manifesto proposed to tax the performance-related pay received by private equity managers, known as carried interest, as income rather than capital gains.
“Again, at this stage further clarification is awaited as to the exact mechanism that will be used in this regard, with any proposals likely to be subject to consultation.”
He added that the island “will continue to work with local industry to promote the Island’s overall proposition in key jurisdictions, including the UK”.
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