Isle of Man criticised as inheritance tax haven

The Isle of Man has been criticised as a tax haven for Britons looking to dodge UK inheritance law.

Companies not registered in Britain do not have to pay stamp duty when a London property is sold or the 40 per cent inheritance tax when an owner dies in the Isle of Man.

This costs the city of London hundreds of millions of pounds each year and is increasingly attracting foreign firms looking to benefit from the British market but unwilling to be subjected to tax.

In 2011, companies based in the Isle of Man purchased £82.3 million worth of London property - up from £49 million in 2009.

Owen Smith, shadow exchequer secretary to the Treasury, has supported calls from Labour leader Ed Miliband for tax reforms in the Isle of Man, Geurnsey and the Jersey.

However, Isle of Man's chief minister Allan Bell has called claims from the UK Labour Party "ill-informed".

See also report on IOM radio 3FM: http://ht.ly/8Eitz