If you want to get away from it all ...

Why be a tax exile?

If you've got loads and loads of dosh, and don't fancy paying your dues to keep schools and hospitals running, there is an offshore tax industry gagging to save you money.

How much tax can I avoid?

Tax havens offer huge reductions on the 40%-plus income tax rates common across in the EU and a fair degree of secrecy from the tax authorities who might think the funds should be repatriated. Like film star Sean Connery and Top Shop owner Philip Green, you can become an exile and keep your money away from the taxman. Low income tax is coupled with zero capital gains tax, no inheritance tax and low taxes for your business.

Do I pay any tax?

Jersey, Guernsey and Isle of Man are not members of the EU and don't charge VAT. A business will be charged import and export duties. One of the main factors that truly sets the Cayman islands apart from most other tourist destinations is that Cayman has no taxes: no sales tax, no income tax, no capital gains tax, no property tax and no inheritance tax.

Can the UK taxman come after me?

Tax investigators find it difficult to trace money they believe has evaded tax once the trail leads to an offshore financial centre. Most of the larger centres, from the Cayman islands to Jersey, have signed agreements with the EU and the US promising to give access to account information. But critics of tax havens argue they only pay lip service to them. Stalling for time and throwing up technical barriers are the most common criticisms.

So how exactly do I turn myself into a tax exile?

In the Isle of Man you need to gain a work permit and then wait three years to become a full resident. There are government relocation packages offering up to 40% towards outlay for relocation costs, other set-up costs and 50% for training if you move the business as well.

Which companies benefit most?

Film companies, for a start. The Isle of Man has built a studio to attract Hollywood producers and wants the island on its list of favourite locations. The island says many offshore companies that trade with the EU find it impossible to obtain a VAT registration. But the Manx government is more open,"making it the ideal vehicle" when you want to pay little or no tax when selling goods or services into the EU. Otherwise, virtual businesses benefit because they can locate anywhere that tax is low.

Does it involve relocation?

Not necessarily. Relocation makes the tax situation simpler, but e-entrepreneurs can allocate their resources more flexibly and enjoy many of the benefits of offshore tax.

A brochure setting out the rules can be found at Isleofmanfinance.com Click on Relocation Brochure. For more information about the latest moves by tax havens to defend their corner or make themselves more attractive see tax-news.com, which carries hundreds of articles about offshore havens and their battles to stay low tax environments.