The contribution made by wealthy residents to the local economy of the Island is highlighted in the latest quarterly economic report to the Council of Ministers published today (Friday February 28, 2014).
The report, covering the final three months of 2013, says the construction sector is expected to grow this year on the back of a high level of new planning approvals including new housing for high net worth individuals.
It explains that six recently approved properties have a combined value of £30 million, which compares with a public sector housing programme in 2014 of £20 million.
The boost for the local building industry is seen as one of a number of economic benefits brought by the sort of wealthy entrepreneur that the Tax Cap policy aims to attract.
Government estimates that such individuals are responsible for the creation of at least 360 jobs, paying wages of more than £27.5 million with ITIP and National Insurance contributions of £6.65 million.
The total revenue for Government generated by persons subject to the Tax Cap, including the income tax they pay directly, is estimated at £15.8 million a year.
Chief Minister Allan Bell MHK commented:
‘The Tax Cap policy was introduced with the aim of attracting wealthy entrepreneurs who will be actively involved in supporting the local economy.
‘The statistics show that this small group of people is making a substantial and disproportionate contribution not only to the economy of the Island but also to the Government revenue that funds public services. There is stiff competition internationally to attract this type of resident and without the Tax Cap policy this contribution could easily have gone elsewhere.’
The latest quarterly economic report to the Council of Ministers can be found on the Government website here at http://www.gov.im/about-the-government/government/the-council-of-ministers/council-of-ministers/comin-reports/