Isle of Man Income Tax Budget 2016 

In the Manx Budget today, 16th February 2016, a few changes to note for Isle of Man residents:

  • Tax free allowance for individuals increased to £10,500 from £9,500 (double for married couples)
  • 10% tax band only on income up to £8,500 for individuals (£17,000 for couples) tax at 20% above this amount
  • Very little change to National Insurance other than an increase in small profits exemption to bring it inline with other lower level amounts of £6,136 from £5,995
  • Pension lump sum permitted increased to £50,000 and can be taken at age 55
  • Increase in relocation tax free allowance to £20,000 for employees being relocated to the Island
  • Land development tax holiday for commercial developments
  • New penalty regime for tax avoidance - 60% of tax charged.

For further details please visit the Tax Office website

Please contact us if you would like to know what these changes mean to you.