“The best laid schemes of mice and men go oft awry.”
This famous phrase comes from the 18th century poem “To a Mouse” by Robert Burns, in the poem he observes that no matter how carefully projects or futures are planned, they can often go awry due to unforeseen circumstances.
We have all experienced moments like this and whilst frustrating, personally challenging, and sometimes financially expensive at the time, they are often valuable life lessons teaching us to expect the unexpected, to plan for it and to be adaptable in changing circumstances.
The last few years have seen radical political change in many countries with a polarisation of ideological views causing internal and external disputes which have then led to an increased frequency of confrontation and in extreme, as we have recently seen in Iran, armed conflict.
Most of us, like the Mouse in Burn’s poem, just want to go about our best lives, earning the reward for our industry so we can create a home, a place of safety from which we can work to build a secure future for ourselves and those we care for.
Until recently the society and the world we live in was predictable with the feeling that there were general rules we could understand which enable us to navigate our course in life and effectively plan for the future.
The political changes in the UK after the last election caused some to feel that the country was no longer a supportive environment for entrepreneurs and wealth creators and as a consequence since last June it is estimated that 16,500 millionaires have left the UK (Henley Migration report) with many affluent individuals and companies relocating to the UAE as it was seen as a safe, stable and tax friendly jurisdiction at the time.
Up until recently over 240,000 British nationals were residing in the UAE and more than 5,000 British companies were operating in the region. Since the Iran conflict started over a month ago (at the time of writing) the UK has repatriated over 100,000 British from the Gulf region according to the Foreign Secretary.
Whilst some will want to stay, should matters deteriorate further this exodus is likely to increase significantly further. Behind every statistic there is a story with at least 100,000 plans, hopes and dreams currently affected.
Although many Expats went to the region for work there, there was also a sizeable number who planned their relocation to the Gulf for lifestyle and tax reasons seeing it as the next stage of their lives and/or business. They will often have taken advice involving the timing and sale or transfer of their UK assets and interests to ensure a tax efficient exit under the current rules, then setting up banking, asset holding, and business structures in the region as the foundations of their new life.
Like the Mouse in the Burn’s poem, they planned for their future home in a safe place, building resources for their future – but they did not expect their plans and hard work to be “ploughed through” by the unpredicted Iran war.
Expats who are considering returning to the UK earlier than planned as a result of the Iran war should consider taking appropriate tax advice as their return may trigger unforeseen consequences regarding the treatment of their activities during the period of time that they had previously considered themselves outside of the UK.
Some Expats in the Gulf may have also set up businesses and structures in the region as part of a long-term plan to build an international business. Relocation back to the UK can also affect the effectiveness of these arrangements where the businesses are currently run and controlled by the Expats themselves. On a practical basis with banking and administration being affected by the conflict in the region this can create operational issues that had not been anticipated.
In situations like this it is critical to look at available options and to adapt to changing circumstances and the Isle of Man can be a viable solution at this time.
The Isle of Man is an easily accessible independent and secure jurisdiction outside of the United Kingdom but within the British Isles with a reputation for stability and independence. Relocating to the Island can help ensure that Expats can maintain their non-UK tax resident status in an area with no IHT, low-income tax, no CGT, and no wealth taxes.
The island’s Government is business friendly and supportive encouraging local employment. Indeed, moving a business and asset holding structures to the Island may also help to ensure the continuity, security, and continued operation of an expat’s business in a favourable (zero percent corporation tax) and internationally recognised location. The Island has a skilled and talented work force and sophisticated banking and finance sector well able to support most clients’ requirements providing a desirable alternative base for international asset holding and trading in these troubled times.
The Island is a beautiful place to live offering an excellent quality of life and supportive environment, many will be looking for a temporary base and home whilst they reconsider their options after say leaving the UAE. In such a scenario there may be a decision to move further afield say to the Far East for lifestyle and business reasons. In this scenario setting up banking and asset holding structures on the Island can provide an insurance against future regional risk – protecting wealth and key interests in a secure and stable location whilst also enabling individual mobility around the world.
At Cayman National Trust Company (Isle of Man) Limited we have an experienced and dedicated team who are well placed to support you if you are affected and concerned by the current geopolitical change. We can assist clients and businesses interested in relocating to the Isle of Man whether as a temporary or permanent move, working closely with professional tax advisors, and we are licenced to provide a comprehensive range of fiduciary administration, trust, and company management services to help clients protect, structure, and transition their wealth with confidence.
For clients also seeking dependable banking solutions, our sister company Cayman National Bank (Isle of Man) Limited offers a full suite of personal and corporate banking services to support your life on the island and/or the development of your international business on the Island.
Whether you are planning a move, restructuring your affairs, or simply seeking greater security and clarity for the future, we are here to help guide and support you adapt your plans to the changing circumstances.
Both Cayman National Trust Company (Isle of Man) Limited and Cayman National Bank (Isle of Man) Limited are licenced regulated entities by the Isle of Man Financial Service Authority under the Financial Services Act 2008 in the Isle of Man. Cayman National Bank (Isle of Man) Limited is also a participant in the Isle of Man Depositors’ Compensation Scheme, as set out in the Depositors’ Compensation Scheme Regulations 2010. See more at www.caymannational.im
