The Isle of Man Aircraft Registry's target aircraft are professionally flown private and corporate owned business jets (as opposed to commercial airliners), but it is also very popular with those wanting to register large helicopters and VLJs - the new wave of very light jet aircraft being produced by the likes of Cessna, Eclipse and Embraer.
The cost savings associated with VLJs are widely expected to transform private and business air travel. The shift toward VLJs has been a key factor in the vast increase in worldwide business aircraft sales.
The Isle of Man Aircraft Register is effectively an independently operated British Register and, for the purposes of the Chicago Convention, the United Kingdom is the supervising state. The legal and regulatory framework relating to the Register largely replicates United Kingdom legislation, albeit with favourable modifications. Accordingly, the Register is regarded as having a legally robust and internationally recognised footing, whilst being sufficiently flexible and accommodating to avoid the unnecessary frustrations and bureaucracy that can be experienced when attempting to register aircraft in other jurisdictions.
The following are some of the key benefits offered by the Isle of Man in terms of aircraft registration.
Service and Standards
The Aircraft Registry is, like the Isle of Man Ship Registry, a division of the Isle of Man Government Department of Trade and Industry and has adopted the same approach that has permitted the Ship Registry to become internationally renowned.
The Aircraft Registry is dedicated to providing a highly professional, but also user-friendly and competitively priced, service. The Aircraft Registry is not intended to be profit making and, accordingly, its scheme of charges are set at the lowest possible level necessary to cover the costs of operating the Registry.
The Isle of Man Aircraft Register is not a register of convenience and only aircraft of a high international standard are accepted. Additionally, aircraft under 5,700kg will usually only be accepted for registration if the owner is Isle of Man resident or operates a business from the Island.
Neutral Registration Prefix
All aircraft registered in the Isle of Man bear the prefix M, followed by four characters (e.g. M-ABCD). This identification mirrors the format of major European registers, but may be preferable to other prefixes in some circumstances on the basis of political neutrality.
Aircraft, crew licences and maintenance organisations that comply with reputable international standards are generally accepted by the Isle of Man Aircraft Registry without the imposition of further requirements, such as modifying the aircraft or retraining crew. Additionally, the location of an aircraft is irrelevant to its eligibility for registration on the Isle of Man Aircraft Register and Manx registered aircraft can fly worldwide without restriction.
The Isle of Man is already a leading centre for aviation finance and leasing. Isle of Man corporate and trust structures are frequently used in aircraft ownership and financing transactions and major international airlines and aircraft operators hold the Island in high regard as a jurisdiction in which to do business. The Aircraft Register plays an important role in the Island's development as a centre for the provision of services to the industry, building on the existing body of expertise already in the Island.
The Isle of Man Ship Register is one of the most popular in the world for the registration of mega-yachts. Additionally, many other mega-yachts not registered in the Island are owned by Isle of Man companies. Mega-yacht owners often operate their own private jets and there is a strong commercial logic for such owners to use the Island as a "one-stop shop". For example, most firms on the Island that provide yacht management services and ownership structures provide the same services and structures in respect of aircraft. Accordingly, a working relationship developed in the course of providing services in relation to a client's yacht can be extended to cover the same client's aircraft, avoiding the need to identify and engage new service providers and repeated "know your client" due diligence.
The Isle of Man offers a tax neutral base to facilitate efficient international tax planning.
- The standard rate of income tax for companies in the Isle of Man is zero percent. This standard rate applies to all forms of income with only two exceptions (namely income deriving from banking or Isle of Man property businesses).
- There is no capital gains tax, stamp duty or analogous tax.
- Unlike other crown dependencies, the Island has an indirect tax regime similar to that of the United Kingdom. The Island is treated as part of the European Union for VAT and customs duty purposes and Isle of Man companies can be part of United Kingdom VAT groups.
Dynamic Companies Legislation
It is possible to incorporate a modern form of Isle of Man company ideally suited for use in aircraft ownership structures. The company, often referred to as the "New Manx Vehicle" or "NMV", is effectively a hybrid of the best characteristics of the international business companies regime of the British Virgin Islands and traditional concepts of Isle of Man company law, creating a vehicle which is legally robust, yet flexible, cost-effective and easy to administer. The NMV regime runs in parallel with the regime for traditional Isle of Man companies and such companies can easily be converted into NMVs.
First Class Business Environment
The reasons why the Isle of Man is regarded as one of the world's most respected international financial centres include:
- The Island's first-class reputation as a well regulated international finance centre (reinforced by Moody's and Standard & Poor's "AAA" accreditation).
- The Island's traditional company law regime is derived from English company law and, as such, UK professionals and banks are comfortable dealing with Isle of Man companies. In the absence of Isle of Man statute, case-law or custom to the contrary, English case-law is of persuasive effect before the Isle of Man courts.
- In addition to the Island's traditional company law and NMV regimes, it is possible to create limited liability companies (LLCs), protected cell companies and general and limited partnerships.
- The Island is a stable political and legal environment in which to do business. Although internally self-governing and constitutionally separate from the United Kingdom, the Island is a Crown Dependency and the United Kingdom is responsible for most of the Island's foreign affairs and defence. Treaties and conventions ratified by the United Kingdom are often extended (with the consent of the Isle of Man Government) to apply to the Island.
- The Island benefits from being within the British time zone.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.