Isle of Man consults on dormant accounts scheme

The island's Treasury plans to use some money that has lain dormant for at least 15 years for good causes

Isle of Man government building
Isle of Man government building

The Isle of Man has announced plans to launch a dormant accounts scheme that will benefit good causes on the island.

The island’s Treasury has launched a consultation on a proposed bill to transfer to a central fund money from any account for which the bank has not been in contact with the account owner for at least 15 years, with a proportion of the money going to local charities.

Some of the money will be held back so that any owners of dormant accounts will be able to reclaim their money, the island government said in a statement this week.

Bill Shimmins, a member of the Isle of Man Treasury and the House of Keys, said the proposals were "designed to benefit the Manx community by realising the potential of money lying in dormant accounts", and he encouraged people to take part.

He said: "It’s important to point out that this is the start of a process and will not result in an immediate windfall for charities in the island. Any distributions are likely to take a number of years to identify and process."

Shimmins added that the Isle of Man government did not stand to benefit financially from the plans.

The consultation will run for six weeks, closing on 19 October.

In the rest of the UK, the dormant accounts scheme has been in operation since 2008 and has identified more than £1bn lying in unused bank accounts, of which £360m has been given to good causes.

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