Isle of Man capital gains tax: none, and no inheritance tax

No. The Income Tax Act 1970 charges one annual tax, income tax, on incomes, and section 2 charges income derived from the annual profits or gains of property or of a trade. No provision of the Income Tax Acts charges a capital gain, and the Income Tax Division says it outright: the Island does not have Capital Gains Tax or Inheritance Tax. Whether you sell shares after a week or a building after twenty years, the gain itself is taxed nowhere.

A conveyance duty on the property's value, paid by the buyer, owed whether the sale makes a gain or a loss. The scales by buyer class are in the table above, and they are charged on the consideration or the market value if higher. Selling shares, funds or crypto costs nothing at all: the duty reaches land transactions only, and land sales are normally exempt from VAT.

Not as a capital gain. Crypto is a capital asset like any other for a private, non-business sale, and there is no capital gains tax for any crypto rule to sit in. The taxes that do exist in the Island, income tax on income, the conveyance duty on land transfers, VAT and excise duties, none of them taxes an investor's net capital gain.

When you are dealing as a trade. Section 2 of the Income Tax Act 1970 taxes the annual profits or gains of a trade as income, so habitual buying and selling for profit is taxed at the income scale, 10% on the first band of taxable income and 21% above it. That is income tax on trading profits, not a tax on capital gains, and it applies whatever asset you deal in.

The Isle of Man levies no capital gains tax: Income Tax Act 1970 s 1(1) raises "an annual tax, to be called 'income tax' on all incomes derived from property, professions, trade, salaries, wages, pensions, annuities, fees, emoluments, commissions, employments, or vocations, or from any other source whatsoever", and s 2(1) charges income "derived from the annual profits or gains of or in respect of or from any kind of property whatsoever" or from "any profession, trade, office, employment, or vocation"; no provision of the Income Tax Acts charges a capital gain. The Income Tax Division states the same on gov.im: "The Island does not have Capital Gains Tax or Inheritance Tax." Source: https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/individuals/residents/moving-to-the-island-new-residents/

Trading is the boundary: profits of dealing in shares, funds, crypto or property as a trade are charged under Income Tax Act 1970 s 2(1) as the "annual profits or gains" of a trade, as income at the income-tax scale, not as capital gains. A private, non-business disposal of a capital asset is taxed nowhere, at any holding period or size of gain.

An owner occupier (a resident individual buying a dwelling house worth under £1,000,000 who declares it to be their sole residential property worldwide) pays a conveyance duty of £0 per £1,000 of value up to £230,000, £10 per £1,000 from £230,000 to £500,000 and £20 per £1,000 from £500,000 to £1,000,000, with a minimum duty of £250 (Land, Deeds and Probate Registries Fees and Duties Order 2023, SD 2023/0077, Schedule 1 Part 1). Source: https://www.gov.im/media/1379454/land-deeds-and-probate-registries-fees-and-duties-order-2023-200423.pdf

A non-owner occupier (any resident buyer who does not qualify as an owner occupier, and resident bodies corporate) pays a conveyance duty of £20 per £1,000 of value up to £3,000,000 and £25 per £1,000 above that, with a minimum duty of £250 (Schedule 1 Part 2). Source: https://www.gov.im/media/1379454/land-deeds-and-probate-registries-fees-and-duties-order-2023-200423.pdf

A non-resident buyer pays a conveyance duty of £40 per £1,000 of value up to £3,000,000 and £45 per £1,000 above that, with a minimum duty of £250 (Schedule 1 Part 3). Source: https://www.gov.im/media/1379454/land-deeds-and-probate-registries-fees-and-duties-order-2023-200423.pdf

The conveyance duty is charged on the consideration or the market value if higher (art 11), rounded up to the nearest £1,000 of value, and is owed whether the sale makes a gain or a loss: it is a transaction tax on the property's value, not a gains tax. It reaches land transactions only (Land Registry transfers of title and Deeds Registry conveyances, assignments and settlements, art 7), so share, fund and crypto disposals attract no duty of any kind; the sale of land is normally exempt from VAT (gov.im, VAT - Land and Property, https://www.gov.im/categories/tax-vat-and-your-money/customs-and-excise/vat/land-and-property/). The 2023 Order replaced the Land Registration (General Fees and Duty) Order 2019 and the Deeds and Probate Registries (Fees and Duty) Order 2019 from 1 May 2023. Source: https://www.gov.im/media/1379454/land-deeds-and-probate-registries-fees-and-duties-order-2023-200423.pdf