VAT reduction down to difference in economies says Craine

Wed, 13 Jul 2011

The Treasury Minister says the latest changes to the VAT agreement with the UK are due to the differences between Britain's and the Isle of Man's economies

Anne Craine announced yesterday that the Island is to lose £75million a year in VAT.

The reduction will come in stages over the next three years.

It comes less than two years after the UK last changed one of its VAT arrangements with the Isle of Man, resulting in a big loss in revenue for the Island

Mrs Craine explains that the UK Treasury wasn't happy with the current deal [play clip]