Manx Budget 2017

Yesterday the Treasury Minister gave his annual budget.

Key changes were an increase in the personal allowance to £12,500 and a decrease in the 10% Tax band by £2,000 to £6,500.  This will make individuals who fully utilise their current 10% band £200 better off.

It was announced that Class 2 National Insurance for self employed will be abolished in 2018, being replaced by a higher rate of Class 4 National Insurance at 11%.  This may well lead to an increase in company incorporations for local sole trader businesses but the detail on this will follow.

Child Benefit and State Retirement Pension both received increases, by 2% for Child Benefit and 2.5% for Pensions.

The Tax Cap is to be increased to £200,000 by 2020/21.