International businesses and entrepreneurial corporates are been drawn to the Isle of Man from the UK after the Chancellor's Budget tax changes have "unsettled" non-doms, according to the Isle of Man Government.
Isle of Man finance director, John Spellman, says the island has "a magnetic pull" for entrepreneurs but stresses the island will not actively chase business if this undermines the UK.
"It is attrition unfortunately by the Chancellor. When you put basic rates up to 50% and you change the basis of corporation tax you unsettle the resident non-doms. You don't gain tax revenue but displace them to other tax locations," he says.
"The UK government destabilized some very significant companies in the UK such as reinsurance and captive insurance companies and these international businesses are looking to relocate."
He believes wealthy entrepreneurs do not generally see themselves as residents of particular countries and many are attracted to the Isle of Man because of its simple tax regime for international citizens.
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