The Isle of Man has launched a new private equity proposition which offers opportunities for the establishment of a private equity fund set up as a specialist fund.
This fund will have fees levied by Isle of Man based fund administrators and investment managers which would be exempt from VAT in the Isle of Man.
The specialist fund structure will have a minimum investment of USD100,000 and requires a regulated administrator. There is no mandatory custodian requirement or direct asset manager.
The structure offers zero corporate tax for the specialist fund and for Isle of Man domiciled managers and administrators.
Services to the specialist fund provided by Isle of Man domiciled managers and administrators will be exempt from VAT. In addition, the specialist fund has no regulatory pre-approval requirements and no regulatory restrictions on asset class or trading.
Allan Bell, minister for economic development, says: “The past few years have seen many changes to the financial services sector. Now, these upheavals are proving the catalyst in creating opportunities for those innovative enough to reconsider their business models and think out of the box. The Isle of Man offers an excellent environment for new fund formations and for niche investment managers through using the ‘Specialist Fund’ – this proposition allows asset managers to take advantage of a lower cost base in a tax friendly environment.”
