Industrial and Commercial opportunities in the Isle of Man

Very generous incentives

The Government of the Isle of Man wishes to promote the continuing growth and diversification of the Island's economy through the encouragement of existing businesses and the attraction of new inward investment. The DTI is particularly keen to encourage high added value manufacturing and services, e-business and company headquarters. Extremely generous assistance and incentives are available.

Large capital grants

Capital grants of up to 40% for the costs of new buildings, building improvements and new plant and machinery can be provided. Whilst all of the grants and loans are discretionary, and are awarded only to businesses satisfying certain environmental and commercial criteria, in practice the average grants offered to projects on the Island are far higher than for similar projects in most European countries.

Expansion grants

Once established on the Island businesses may apply for ongoing financial assistance towards their continued growth and expansion. Again, grants of up to 40% of the costs of building work and plant and machinery can be provided.

Superb operating grants

The Isle of Man is one of few places where operating grants are available. For example, grants of up to 40% are available for non-recurring setting up expenses incurred in the first year; for marketing costs for new ventures; for employing consultants to help identify and address a specific business need; and for the costs of pursuing quality assurance standards such as IS09000.

Training costs

Grants for employers participating in approved training schemes are available at the even higher rate of 50%.

Loans on very reasonable terms

Loans of up to half a company's projected working capital requirement, at modest interest rates and with capital repayment deferred for up to two years, may be offered in addition to the grants.

Rent reductions

Should a company with an approved project wish to rent a new factory privately, rather than build its own with grant aid, a rent allowance can be offered towards the early years of occupation.

Tax incentives

As an alternative to applying for the Government's various grants and loans, companies can apply for a tax incentives.

Extremely low tax rates

Low corporate taxation

The Island's policy is to keep taxation low and there is an attractive tax structure for companies. Currently resident trading companies are subject to 10% tax and there is a commitment by Government to try to reduce this rate further to 0% by 2006.

Generous capital allowances

Capital allowances for plant and machinery and for industrial buildings are extremely generous by European standards and include up to 100% of the cost of plant, machinery and buildings in the first year of ownership with any balance carried forward having a writing down allowance of 25% p.a. For taxation purposes plant and machinery is defined widely and includes lorries, aircraft and ships. Government grants are not deducted from the gross cost when calculating the relief which may be claimed. Equally, grants are not taxable as a trading receipt, which is the case in some countries.

Business rates

The rates payable by businesses on the Island are substantially lower than those for similar properties in the UK.

Very low personal taxation

Personal taxation is also very attractive for residents. The standard rate of income tax is just 10% and the higher rate is a very modest 18%.

Generous personal allowances

Combined with this, personal allowances are very generous and are fully transferable between married couples.

Freedom from other taxes

The Isle of Man Government does not charge:

• capital gains tax;
• wealth tax ;
• capital transfer tax;
• inheritance tax;
• death or estate duties.

Easy access to your markets

The Isle of Man offers:

• Free access for goods to Community markets;
• Fast access to the UK and the rest of Europe via the excellent air, sea, telecommunications and postal links;
• Rapid transport by air cargo;
• Full postal service for smaller items to multiple destinations.

Access for goods to the European Community market

Goods produced in the Isle of Man have full access to all Community markets.

While the Isle of Man is neither a member state nor an associate member of the EC, there is free movement of goods between the Island and the Community, ensuring that Manx products enjoy full access to the Single Market of 320 million people.

Sea and road transport

A comprehensive shipping service is available. The Island's principal port at Douglas has deep-water berths for handling roll-on/roll-off vessels and facilities for handling passengers, cars and freight vehicles, general cargoes, and bulk oil and gas cargoes.

The main sea route is from Douglas to Heysham and there are at least twelve sailings a week in each direction throughout the year. The average sailing time is three and a half hours. Heysham is a modern port in the northwest of England, closely linked to Britain's motorway and Intercity rail networks.

Regular, large-scale customers can block-book space at special rates, and a large proportion of space is sold this way but the shipping companies retain sufficient space for other assignments.

Goods can also be shipped out of Ramsey in the north of the Island to Glasson Dock in Lancaster in the north west of England and to Belfast in Northern Ireland.

Air freight services

There is an excellent air service from the Island, with over 150 flights per week, to many destinations in the UK, Ireland and Channel Islands. Flying time to London (Gatwick and London City) is about one hour.

Air cargo facilities are readily available. No export clearance to the European Community is needed, but for the rest of the world export clearance can be arranged very efficiently before goods leave the Island, thus ensuring a speedy passage to any destination in the world. Arrival in major European destinations can usually be arranged for the morning following despatch from the Island.

No customs formalities

Transportation of goods and passengers to and from the United Kingdom is unhampered by customs and passport controls.

Access to imported materials and components

The excellent transport facilities to and from the island also mean that companies have no difficulties in securing the materials and components they require.

Freeport

There is a Freeport on the Island, embracing a low density high quality business park. Processing and storage of goods in the Freeport can be undertaken without Custom duties, VAT or EC levies.

Your labour needs are readily satisfied

On the Isle of Man you will discover

• High quality labour;
• Wide range of skills;
• Competitive labour costs;
• Excellent labour relations.

A wide range of skills available locally

The variety of skills available on the Island are illustrated by the range of companies manufacturing different goods and offering high quality services including:

• optical instrumentation
• electronics;
• thermostatic controls;
• aerospace components;
• medical components;
• seals for nuclear and petrochemical industries;
• textile;
• Biotechnology;
• film industry.

Companies that prefer to bring staff from elsewhere will find a very flexible approach to granting work permits for key staff.

Competitive wage costs

Hourly wage costs on the Island are similar to the UK.

Flexible, productive and committed labour

Manx staff are renowned for their flexible and cooperative attitudes and their willingness to adapt to new ways.

No oppressive employment regulations

The Island is free to determine its own employment legislation and has a framework which is appropriate to the needs of both local employers and the workforce of the Isle of Man. The Manx Industrial Service promotes the improvement of industrial relations and provides advice to both employers and individual employees about the law and best practice.

Excellent industrial relations

Manx unions take a positive and cooperative attitude to employers. Strikes and industrial disputes are very rare. There is no legal requirement for employers to recognise unions and there are many non union companies.

Help to train your workforce

Training the Island's workforce in line with the needs of local industry, and to a standard that is at least equal to the best in the United Kingdom, is a priority for the Government.

To facilitate this, support for training is available through the Department of Trade & Industry's Training Division. Assistance may take the form of advice, direct training provision or financial assistance to cover training costs, and the services are available to both employers and prospective trainees.

Special training programmes can be made available to meet the needs of new companies.

Meeting your other needs

Land and buildings

The Island's Government has a policy to encourage the building of industrial premises in advance of demand, so there is a high chance there will be a suitable building available for your needs. There is ample land zoned for future light industrial use.

Money and banking

The currency used on the Island is the British Pound (GBP) and the Island also prints its own bank notes which is of equivalent value. As a result of the Island's specialism in international financial services, there are no less than 55 banks, including all the leading UK clearing banks, represented on the Island.

Other business services

Your business service needs are easily met on the Island. Companies can choose from over 60 accountancy firms including five of the "big six", 16 firms of lawyers, and several printing firms for their professional services.

Telecommunications

Manx Telecom is the Isle of Man's primary telecommunications provider. Manx Telecom is a wholly owned subsidiary of O2.

Manx Telecom provides fixed line and mobile telephony services, closely integrated with the UK telephone number range. There is a full range of Internet services and a portfolio of quality hosting products and services.

Manx Telecom is at the leading edge of telecommunication development. It was one of the first in the world to offer broadband ADSL services to its customers and currently provides these to 80% of the household and businesses on the Island. In December 2001 Manx Telecom was the first telecommunications operator in Europe to launch a live 3G network.

Manx Telecom is an industrial quality internet service provider (ISP) with a comprehensive range of web hosting and Internet access products. The company's purpose-built web hosting facility, adjacent to the Islands main Point of Presence, offers 300 square metres of hosting space equipped with air conditioning, fire detection and an environmentally friendly fire suppression system. The electricity supply is protected by Uninterrupted Power Supply (UPS) and all the servers and hosting equipment are monitored round the clock, with Cisco- and Microsoft- certified technicians always on hand if any problems should arise.

The telephony and Internet services provided by Manx Telecom on the Island are backed by highly resilient self-healing fibre and microwave links between the Isle of Man, UK and Ireland.

The increasing requirements by business for resilience, and therefore alternative supply of telecomms and Internet services, has spawed a number of ISPs on the Island offering varying standards of service and facilities.

Domicillium concentrate on Internet and VOIP services. They currently offer a wide range of Internet services from conventual dial-up and broadband service to an innovative broadband service via a radio link network covering the whole of the Island. All off-Island services via the radio link are supported with a highly resilient off-Island telecoms service via Cable & Wireless optical cable.

Domicilium also offer a secure server facility and full disaster recovery service in conjunction with its strategic partner Skanco via a facility at the IOM Business Park. The server facility is monitored 24 X 7 with qualified engineers always available should problems be experienced and is protected by automatic air conditioning, fire detection and environmentally friendly fire suppression systems. UPS ensure continuity of electrical supply. The disaster recovery facility provides full office environment recreation for clients in a number of office suites of differing sizes to cater for each client's specific needs.

Other ISP's are Mannet, Enterprise and XKO

Mannet offers conventional dial up, ISDN and broadband facilities to domestic and business clients.

Enterprise is an off-Island ISP that continue to support their on-Island customers.

XKO is primarily an Internet solutions provider that offers hosting facilities for its clients if required.

Postal services

The Isle of Man Post Office offers a wide range of services - all designed to help your business communicate effectively and efficiently with existing and prospective customers. The Isle of Man Post Office specialises in providing customised solutions for any mailing requirement, and offers a reliable, efficient and flexible service for all your domestic and international needs. The range of services available include

• Special Delivery;
• Letter/Parcel Services;
• Isle of Man Stamps Centre;
• Island-wide Counter Network;
• Collections and Deliveries - tailored to your needs;
• Integrated Mailing Solutions (IMS).

IMS offers a range of cost-effective ways to streamline all your company's mailing operations.

Electricity, Water and Gas Services

Electricity is generated on the Island, and reliability is extremely high. A new Combined Cycle Gas Turbine Power Station has recently been completed providing the Island with a state-of-the-art natural gas power station that will serve the Island's needs well into the future. This will be one of the cleanest and most environmentally friendly power stations in the world, a key consideration for the Isle of Man. The power station is backed up by an electricity interconnector cable, providing a robust infrastructure and also allowing the export of surplus generation capacity back into the UK national grid.

The Isle of Man has ample fresh water supplies of the highest quality, and there are generally no restrictions on the use of water.

Mains gas is available in the Island's main urban areas. Rural areas are served by propane gas supplied either by tanker to storage tanks or through cylinders.

A marvellous lifestyle awaits you

• Attractive environment;
• Excellent health care;
• High educational standards;
• Efficient transport and communication.

Attractive and high-quality environment

The Isle of Man is a beautiful place, unspoiled by urban sprawl and pollution. Road congestion is almost unknown making driving or walking to work both easy and pleasant. With its rich heritage, the Island is a splendid environment in which to live.

Education

The Manx Government ensures high standards throughout the educational system through a combination of the best in traditional and modern approaches to teaching and learning.

The use of information technology is an integral part of the education system. All schools have broadband networked Internet and all full-time teachers have modern laptops provided. The computer to pupil ratio is 1:5 in secondary schools and 1:7 in primary. In 2001 and 2002 90% of school leavers had an ICT qualification.

The general framework for education is the same as in England and Wales, with Manx schools following the National Curriculum and the same assessment methods as the UK. Exam results compare favourably with those of the UK.

In addition to the excellent state schools, there is a very well known mixed public school, King William's College, and a mixed preparatory school.

The Isle of Man College offers a range of vocational courses, including higher technology and business studies. A great variety of Adult Education evening classes are run throughout the winter months at the College and in other parts of the Island.

The Island also has an International Business School which provides full and part-time Higher Education opportunities, in a variety of flexible modes, to employers and employees from all types of business. In addition, its specialist environment in a leading offshore jurisdiction enables students from all countries to follow courses and carry out research that focus directly on the international finance industry.

Leisure activities

The Island offers a range of leisure activities. Outdoor pursuits include golf, sea and river fishing, sailing, windsurfing, hang gliding, diving and rambling. International car rallying, cycling and the famous TT motorcycle races are also annual events.

Other leisure activities include the theatre, cinemas, health clubs, a casino, night clubs, public houses and top-class restaurants. The Island is well served with shops and supermarkets, and a range of new shopping precincts, superstores and shopping malls have been added in recent years.

There are excellent hotels on the Island of all standards, including three and four star hotels.

Comprehensive healthcare and social services

The Isle of Man enjoys a comprehensive National Health Service with better standards than the UK. Healthcare takes a high priority in Government expenditure plans, reflected in the quality and extent of services offered.

A new £100m+ hospital has recently been built and is well-equipped. There are resident consultants in most specialities. Under a reciprocal arrangement with the UK covering health and social benefits, new residents on the Island are entitled to the full range of health care services as soon as they take up residence.

Low crime rate

There are exceptionally low crime rates on the Island.

New residents welcomed

Newcomers to the Island settle down very quickly. There are plenty of opportunities for partners and children to find work. Friends are easily made and a wide variety of social opportunities await you.