Protected Cell Companies are a special purpose vehicle used to provide legal segregation of assets offering flexibility and security for clients.
Our article in July highlighted the impending introduction of legislation pertaining to the substance requirements for tax resident companies. The Isle of Man Government has recently released a piece of draft legislation in relation to new substance requirements, which will, subject to passage through Tynwald and will come into effect for accounting periods starting on or after 1 January 2019.
With increasing technology and the number of devices we use online, the threat of Cybercrime has continued to surge in recent times and the consequences from both a financial and reputational perspective have grown considerably.
The aviation industry on the Island had seen rapid growth since May 2007 when the Isle of Man Aircraft Registry was established to provide services aimed specifically at private and corporate business jets and helicopters. Until recently, the aviation sector on the Isle of Man was seen as one that was relatively low risk, continuing to grow steadily, with high quality clients. All in all, it has been desirable sector in which to work.
November 2018 marks the 12th anniversary of the introduction of the 2006 Act company form in the Isle of Man. It has proved a successful change with many overseas investors operating through the Island now using the 2006 Act Company as their standard corporate form. The most recent statistics from the Companies Registry indicated a total of 9,576 active 2006 Act Companies as at 30 September 2018.
Recent years have seen a continual increase in high net worth individuals establishing family offices on the Isle of Man as a means to protect and manage wealth for future generations. Skills required to manage wealth are often different from those used in generating it, and in many cases people wish to pass these responsibilities to professional advisors when they become too time consuming or complex to deal with.
I’ve written before about the various new tax regimes that have come out of HMRC since 2012 specifically targeting UK real estate. It started in 2013 with Annual Tax Enveloped Dwellings (“ATED”) and a new capital gains tax system for high value residential property. This was followed by the introduction of non-resident capital gains tax on all UK residential properties and most recently, the inclusion of all UK residential property, however owned, within the inheritance tax regime.
For many years businesses have relied upon “offshore” or non-resident structures to reduce or defer taxes and improve returns for their investors. How these structures are managed may, however, be taking a different turn. Tax authorities seem to be asking whether there is a business reason to set up a company in another jurisdiction.
For many entrepreneurs from less developed countries travelling to first world countries can become a difficult and often daunting prospect. Acquisition of visas and collecting the correct documentation can often be time consuming and tedious as are the queues and questioning by immigration officials. This coupled with other domestic issues makes the prospect of acquiring a second passport that can smooth entry at the border of their next destination an attractive proposition to many individuals.
As we know, cloud computing has transformed the accountancy profession in recent years. With ever increasing coverage and speed of internet access, the days of hosting software on individual machines appear to be numbered. It is not without its challenges however, and I outline below some considerations for people deciding on how best to proceed.