Isle Of Man/UK Taxation Comparisons 2009/10.

1. PERSONAL TAXATION

INCOME TAX RATES

> *A rate of 50% on those earning in excess of [pounds]150,000 will be introduced in the UK for the tax year 2010/11.

PERSONAL ALLOWANCES

> IOM MORTGAGE INTEREST AND LOAN INTEREST

Tax relief is granted pound for pound in the Isle of Man on interest paid to Manx resident lenders up to [pounds]15,000 per individual.

INCOME TAX: EXAMPLE CALCULATIONS

Taxpayer, single, aged 30 with an income of [pounds]100,000 pa.

> INHERITANCE TAX (IHT)

IOM

There is no charge to IHT in the Isle of Man.

UK

The threshold at which IHT is payable is currently [pounds]325,000 above which IHT is payable at 40% (subject to exemptions and reliefs).

CAPITAL GAINS TAX (CGT)

IOM

There is no charge to CGT in the Isle of Man.

UK

Gains on chargeable assets are currently taxed at 18%.

VAT

Both the IOM and UK VAT rates are currently 15% returning to 17.5% from 1st January 2010.

Under the flexibility provided by the Customs & Excise Agreement with the UK, the Isle of Man applies a reduced 5% rate of VAT to certain supplies including hotel accommodation, gas and electricity.

STAMP DUTY

IOM

There is no stamp duty payable in the Isle of Man.

UK

Stamp Duty Land Tax (based on consideration)

> 2. CORPORATE TAXATION ISLE OF MAN COMPANY TAX RATES

General rate of corporate income tax = 0%

Higher rate of 10% corporate income tax on income from the following sources:

Income arising from banking business

Income derived from land and property situated in the Isle of Man

ATTRIBUTION REGIME FOR INDIVIDUALS

For accounting periods commencing on or after 6th April 2008 Isle of Man resident individuals having an interest in a "relevant company" will be liable to Manx income tax on their share of attributed profits from that company.

CORPORATE CHARGE

An annual charge of [pounds]250 is collected as part of a company's annual return filing fee.

UK CORPORATION TAX

> The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mr John Rimmer

Dickinson Cruickshank

33 Athol Street

Douglas

IM1 1LB

ISLE OF MAN

Tel: [phone]

Fax: [phone]

E-mail: [e-mail]

URL: www.dc.im

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