From and Isle of Man resident's point of view this means because of it's favourable taxation status, personal income tax rates are between 10% and 18%, and the new cap on total income tax payable for high income individuals is £100,000. Poll tax, capital gains tax, gift tax, inheritance tax and stamp duty on property simply do not apply.

In matters of indirect taxation, the Island in the main follows customs duties and VAT rates as prescribed from Westminster under the Customs and Excise agreement. The Isle of Man Treasury has introduced a standard zero rate of corporation tax for business as a further evolution of its national tax strategy.

National Insurance contributions are kept generally in line with those required from employers and employees in the United Kingdom. The surcharge which is made on United Kingdom employees does not however apply.

The Isle of Man did not follow United Kingdom policy in the introduction of a poll tax and its successor 'council tax'. The Isle of Man retains the traditional system of 'gross rateable value' which is attributed to all Island property plus a water rate levied but the Isle of Man Water Authority.

Pension: On the Isle of Man a personal pension plan is an extremely tax efficient way of building up a fund for retirement because all contributions made to such a plan attract tax relief. There are restrictions on the amount that can be invested into a personal pension plan in any one year, and by April 2010 the earliest you can start to take your benefits will be age 55.

Specialist advice is available on the Isle of Man both for existing pension holders, and for those policies that have been taken out in the UK.