IoM Will Not Follow UK's Lead On Taxing Business Jets

By ExpatBriefing.com Editorial 07 May, 2012

The Isle of Man's Treasury Minister, Eddie Teare has confirmed that, despite the territory maintaining many similar elements to the United Kingdom tax regime, the island will not follow suit with the UK government's decision to begin taxing small business aircraft under the Air Passenger Duty (APD) regime.

The assurance follows confirmation that the United Kingdom is extending Air Passenger Duty to business jets, which will result in passengers travelling aboard business jets incurring tax of GBP13 on fares from the United Kingdom to the Isle of Man, from April 1, 2013.

The Isle of Man presently has no plans to reciprocate, Teare has confirmed, meaning that tax will only be due on flights inbound to the island. Presently, the Isle of Man government has confirmed 19-seat aircraft will not be subject to APD, but that the Treasury is considering whether extending APD to other business jet sizes would impact the island's economic opportunities and the growth of the Isle of Man Aircraft Registry.

“Air passengers aboard 19-seat aircraft could potentially have been faced with paying an additional GBP13 on both legs of their journeys between the UK and Isle of Man,” Teare commented. “However, we have taken the decision not to introduce this duty on the Isle of Man to UK leg of flights. Whilst I will continue to raise the matter with my UK counterparts, the extension of APD to passengers aboard 19-seat planes on travel from the UK to the island is ultimately a matter for the UK government. In the context of the island, I believe that maintaining the status quo and not introducing it is the preferable solution, as a number of routes operated from the Isle of Man are served by aircraft that fall into this category.”

“In relation to extending APD to other classes of business jet, I am seeking the views of the Department of Economic Development, and through them of businesses, before making a final decision on whether to introduce the UK’s other APD changes.”

Tags: Individuals | Expatriates | Isle Of Man | Tax | Business | Air Passenger Duty (APD) | Aviation | Financial Services | Retirement | International Financial Centres (IFC) | United Kingdom | Professionals | Services |

 





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