UK Tax Changes Prompt Rise in Isle of Man Luxury Home Enquiries from British Buyers

Enquiries for homes priced above £1 million from UK-based buyers now account for at least half of all such requests received by Cowley Groves estate agency on the Isle of Man. Managing director Orry-James Creane said the share is more than double the level recorded 18 months earlier. "Prior to last year, that was unheard of," he said.

Creane stated that changes to inheritance tax rules were the issue most frequently raised by those exploring a move. UK buyers have recently purchased a number of multimillion-pound properties on the island, according to local agents. Chancellor Rachel Reeves has announced a series of tax measures since taking office.

Pensions are due to become subject to inheritance tax under the new measures. Homeowners with properties valued at £2 million or above face additional tax liabilities. The Chancellor also introduced higher tax rates on property income and dividend payments, abolished non-domiciled tax status, reduced reliefs previously available to farmers and business owners, and increased capital gains tax rates.

The Isle of Man's higher rate of income tax is 20 per cent, and personal income tax liabilities are capped at £220,000 a year for individuals. Creane said these benefits had attracted increasing attention. "The most recent changes made by the Labour Government have forced them to assess what alternative jurisdictions offer them," he said.

Rathbones published data in February showing that almost 6,000 founders of high-growth businesses had left the UK over the previous two years. Tyson Fury relocated to an £8 million estate on the Isle of Man after home invasions at his Morecambe property.

" "It's buoyant for all agents on the island," Wallis said, adding that lower crime levels and demand for skilled workers were among the factors attracting new residents.