Including the Channel Islands and the Isle of Man in Brexit makes sense

The Channel Islands and the Isle of Man are Crown dependencies, under the sovereignty of the British monarch and thus part of the remaining British Empire. The islands take part in the EU freedom of movement of goods but not labour, services or capital. They are outside the VAT area, but inside the customs union, and the Isle of Man is also inside the customs union.

Channel Islanders and Manx people are British citizens and hence European citizens. As a result, they can travel freely within the EU, and all European citizens can travel to the islands without restrictions. However, the islands do not participate in the freedom of movement of labour, and as a result their citizens are not entitled to work or reside within the EU unless they are directly connected (through birth, or descent from a parent or grandparent) with the United Kingdom.

The Chief Ministers from the Channel Islands and the Isle of Man issued this joint statement:

The regular engagement between the governments of the Crown Dependencies and the UK has been constructive and demonstrates our joint commitment to the strengthening of our historic relationship. We look forward to continuing to engage closely together as the negotiations continue and remain committed to ensuring a deal which works both for the UK and for the extended British family.

A small, positive update from the Department for Exiting the European Union.