Isle of Man based trading house - interested?

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Neil24

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I work for an Isle of Man based Private Equity firm. We are considering setting up a trading house in the Isle of Man, and wanted to gauge whether there would be any interest in this? I would also appreciate any other feedback or comments that anyone had on this idea.

The benefit of the Isle of Man is it's low rates of tax for individuals. The higher rate of tax is 20% (a 30% saving vs. UK!) There is also a Tax Cap of £115k, on high earning individuals.

The IT infrastructure in the Isle of Man is world class, and the quality of life is very high.

The model I have in mind would be to set up a trading house to attract EXPERIENCED traders with a proven track record. We would provide Bloomberg/Reuters access, live news feeds, etc. We would also look to provide access to the necessary trading platform (to suit each trader). We do not propose charging a desk rental.

We envisage each trader trading through a joint account, which has £1 of our private equity money for every £1 of the individual traders’ funds. This way there is a true partnership, with both parties making money together.

I would be grateful to hear if this model sounds interesting to anybody, or if anybody has any feedback on what I have set out above?
 
I doubt if many people here are making enough money to make a move out of the U.K. worthwhile. If I understand HMRC rules correctly self employed people have to leave the U.K. for at least 3 complete tax years (with up to 90 days/year average allowed back in the U.K.) in order to no longer be U.K. taxed. Anyone moving back earlier would not benefit.
 
I can't see what the attraction is here, how much of the profits on your half of the money does the trader get to keep? What happens if they lose money?
 
Neil24 said:
The IT infrastructure in the Isle of Man is world class, and the quality of life is very high.
Click to expand...

Ya think? Why go to that rock when you could be based in Gibralter or Malta?

Most of these fishing expeditions on T2W are not genuine, look, if you'd done your homework, knew it would work, had the plan and the money you'd just do it, you wouldn't mince around on trading forums inviting "what do others think?" type comments on a message board you have no history with..if it sounds and smells small time it usually is..
 
Neil24 said:
The model I have in mind would be to set up a trading house to attract EXPERIENCED traders with a proven track record. We would provide Bloomberg/Reuters access, live news feeds, etc. We would also look to provide access to the necessary trading platform (to suit each trader). We do not propose charging a desk rental.

We envisage each trader trading through a joint account, which has £1 of our private equity money for every £1 of the individual traders’ funds. This way there is a true partnership, with both parties making money together.
Click to expand...

50% split with free desk is not going to appeal to experienced traders who are used to paying £2k for desk and getting 90% splits.
 
Neil24 said:
I work for an Isle of Man based Private Equity firm. We are considering setting up a trading house in the Isle of Man, and wanted to gauge whether there would be any interest in this? I would also appreciate any other feedback or comments that anyone had on this idea.

The benefit of the Isle of Man is it's low rates of tax for individuals. The higher rate of tax is 20% (a 30% saving vs. UK!) There is also a Tax Cap of £115k, on high earning individuals.

The IT infrastructure in the Isle of Man is world class, and the quality of life is very high.

The model I have in mind would be to set up a trading house to attract EXPERIENCED traders with a proven track record. We would provide Bloomberg/Reuters access, live news feeds, etc. We would also look to provide access to the necessary trading platform (to suit each trader). We do not propose charging a desk rental.

We envisage each trader trading through a joint account, which has £1 of our private equity money for every £1 of the individual traders’ funds. This way there is a true partnership, with both parties making money together.

I would be grateful to hear if this model sounds interesting to anybody, or if anybody has any feedback on what I have set out above?
Click to expand...

Its a fuc-king joke right?
 
gc1 said:
I doubt if many people here are making enough money to make a move out of the U.K. worthwhile. If I understand HMRC rules correctly self employed people have to leave the U.K. for at least 3 complete tax years (with up to 90 days/year average allowed back in the U.K.) in order to no longer be U.K. taxed. Anyone moving back earlier would not benefit.
Click to expand...

Thanks for your constructive comments! My understanding is that you would become IOM resident from the point that you permanently move from UK to IOM. The 90 day rule is then dependant on the amount of time you would spend in UK - under the current "grey" legislation if it was 90 or more midnights you will have problems.
 
Hoggums said:
I can't see what the attraction is here, how much of the profits on your half of the money does the trader get to keep? What happens if they lose money?
Click to expand...

Clearly this idea isn't taking off so can I turn the question back on you..... how much profits on our half of the money would be attractive enough to make you or other traders consider it?
 
Black Swan said:
Ya think? Why go to that rock when you could be based in Gibralter or Malta?

Most of these fishing expeditions on T2W are not genuine, look, if you'd done your homework, knew it would work, had the plan and the money you'd just do it, you wouldn't mince around on trading forums inviting "what do others think?" type comments on a message board you have no history with..if it sounds and smells small time it usually is..
Click to expand...

the money is there mate. just looking to see if we can find a formula that is attractive to more experienced traders.
 
j b said:
50% split with free desk is not going to appeal to experienced traders who are used to paying £2k for desk and getting 90% splits.
Click to expand...

Again, thanks for the constructive feedback.

Just so I get this right, are you saying if we put £100k in and the trader puts £100k in, the trader will want the gains on £180k of the month (90% of the full pot)?
 
Neil24 said:
just looking to see if we can find a formula that is attractive to more experienced traders.
Click to expand...

Why? PM me, there's much better ways for your private equity firm to make money rather than setting up a prop firm which is pointless...
 
Neil24 said:
Again, thanks for the constructive feedback.

Just so I get this right, are you saying if we put £100k in and the trader puts £100k in, the trader will want the gains on £180k of the month (90% of the full pot)?
Click to expand...

do you know how a prop firm works?
 
Neil24 said:
The benefit of the Isle of Man is it's low rates of tax for individuals. The higher rate of tax is 20% (a 30% saving vs. UK!) There is also a Tax Cap of £115k, on high earning individuals.
Click to expand...

if someone wants to avoid paying standard uk tax rates they can pay a 'creative' accountant to take advantage of the many (though getting fewer) loopholes.

as per dash comment, i think you need to do a little research as to how prop firms work.
 
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