Just what exactly qualifies you as a high net worth individual?

An MHK says there is confusion around the correct definition of the term, which is widely used around the world.

Even the government department charged with attracting what it calls ’high net worth individuals’ to the island does not have a specific definition.

Jason Moorhouse (Arbory, Castletown and Malew) tabled a Tynwald question for Enterprise Minister Laurence Skelly, asking what criteria his department used to classify someone has being of high net worth.

He said: ’Providers of professional services on-island have widely differing opinions on what should be identified as a high net worth individual, thus sending out a confused message to locals and people planning to move to the island.’

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The minister said the term was widely used to classify someone with ’considerable liquid or investable assets’.

He added: ’Whilst there is no prescribed level, it is generally accepted that such assets will exceed the equivalent of US$ 1million.’

Such a definition was adopted by Capgemini in its World Wealth Report, which Mr Skelly described as the leading publication on high net worth individuals.

’Therefore, while the Department (for Enterprise) does not use a specific definition, it follows globally recognised terminology in this area,’ Mr Skelly said.

He said that the Locate Isle of Man strategy targeted ’high value active entrepreneurs’.

Mr Skelly added: ’The work around this theme emphasised the promotion of the island as a destination for high net worth individuals who are seeking to actively invest as it represents the greatest economic benefit to the island.

’It therefore remains an objective of the department to continue to attract individuals with significant investable assets and encourage them to establish businesses and take investment decisions which will help the island to remain a special place to live and work.’

The minister said he was not aware of the confusion highlighted by Mr Moorhouse.

But he added: ’With regard to the Locate strategy - separated from the taxation strategy - we clearly want active high net worths and that is why we term it as high value active entrepreneurs, because many of the very successful businesses in this island actually employ the vast majority of people here and we clearly want more of them.

’There is a separate question with regard to tax caps and taxation, but that is a very different matter.’