Tax cap paying off says minister

Limits on income tax payable by HNWIs

The Treasury Minister insists government's tax cap policy has kept wealth in the Island since its introduction a decade ago.

Alf Cannan made the claims in response to a Tynwald written question from Ramsey MHK Lawrie Hooper this week.

Implemented in 2006, the tax cap limits the income tax payable by high net worth individuals to £125,000 per year. 

In his answer, Mr Cannan revealed 66 residents were currently benefiting from the measure.

Though the majority already lived here prior to its introduction, 20 of them have settled here in the last ten years.

The minister claims the benefits are 'twofold' - giving the super-rich an incentive to relocate to the Isle of Man, and encouraging wealthy existing residents to keep their assets at home.

He adds the contribution is measurably felt, and tax capped individuals collectively employ more than 2,000 local staff.