Tax havens remain upbeat
Islands are unfazed by British government's plan to tighten rules, writes Peta Tomlinson
Where do the wealthy go when the taxman demands too much? The British Isles is one choice. Positioning themselves as fully-fledged tax havens, the Isle of Man and Channel Islands, such as Jersey and Guernsey - all self-governing jurisdictions of the British Crown - have benefited from the flood of British companies and high-net-worth individuals (HNWIs) who fled offshore in more buoyant times to a friendlier fiscal environment.
But are the days of wine and (low tax) roses numbered? And if so, what will this mean for the islands' property markets?
It's been reported that the British government has a mind to rein in offshore taxes in its Crown dependencies. Radical plans to force the tax havens to reveal the names behind hidden companies, account holders and trusts have been drawn up by the Treasury. The reports say the new rules could come into force as early as next year.
Nick Cooper, residential director at Black Grace Cowley, an Isle of Man property agency, isn't fazed.
"While it is impossible to cover all bases on such changes in legislation, we feel confident that the island can stand on its own feet very well. In fact, that is the motto of the three legs of man [the Isle of Man's symbol]. Whichever way you throw it, it will stand," he says.
"The island has too many good facets to be unduly affected by Britain trying to plug a perceived financial hole that actually generates wealth for Britain, not costs income, but that is a whole new topic."