Wanted: residents on the Isle of Man

A view over the harbour in Douglas, the capital town of the Isle of Man

No inheritance tax, no stamp duty, no masks and no social distancing. These are just some of the perks used to entice prospective residents to the Isle of Man.

The campaign to encourage relocation to the self- governing crown dependency has been stepped up recently, as the island seeks to solve its skills shortage and lure property buyers.

It is currently in a three-week “circuit breaker” lockdown to stem a surge of Covid cases, but last year most restrictions were lifted, including social distancing and masks. Non-residents are currently unable to travel there.

Tim Groves, of estate agent Black Grace Cowley, said the pandemic was a catalyst for people considering moving to the island. “The last 12 months have seen a huge increase in people off the island looking very seriously at relocating to live and work here,” he said. In February this year the firm recorded a tenfold rise in enquiries from high net worth individuals looking to move to the island, compared with the previous year.

With a population of around 85,000 and an unemployment rate of just 1.9pc, the Isle of Man has surplus job vacancies, despite the pandemic. It also has an average commute time of 20 minutes, while residents pay no capital gains tax, inheritance tax or stamp duty.

The island also has more lenient thresholds on income tax than the UK, taxed at a lower rate of 10pc and upper rate of 20pc. In a bid to boost its population, the Isle of Man offers a holiday on National Insurance, with new or returning residents able to apply for a refund of up to £4,000 on their contributions for their first year there.

The majority of people relocating to the island move from the UK, said Andrew Stewart, of Locate Isle of Man, a body set up to lure new residents, but there is also a growing South African expat community. “It is the beauty of finishing work and being able to climb a mountain or be on the beach all within 10 minutes of each other,” he added.

Big spenders on the island are likely to get more space for their money too. With a budget of between £ 2m and £4m the average price per sq ft is 23pc cheaper than Cheshire and 72pc cheaper than Jersey, according to data from property sites Zoopla and On The Market. Rachel Mortimer