2012-13 ISLE OF MAN BUDGET AT A GLANCE

Government has continued to make savings whilst adopting a new four year rebalancing plan.

In 2012-13 -

We have achieved further savings of £12 million to add to the £51 million saved since 2010-11.
Spending is £35 million below last year’s plan.
Comparative staff costs are £1.5 million below last year’s budget.
Staffing was reduced by 170 posts last year. The overall reduction over three years is 345 posts.

In addition to these savings we have accommodated -

Gross Spending on benefits of £249 million, £11.5 million (5%) higher than last year, including £151 million on the State Pension and Pension Supplement.
Net spending on Health up by £3.6 million (3%).
A Capital Programme of £83 million for Government Departments and Statutory Boards.
£55 million of construction schemes including, £18.1 million to be spent in the Local Authorities’ Housing Programme.

In respect of Taxation -

The income tax standard rate for individuals remains at 10%.
The income tax higher rate for individuals remains at 20%.
Income Tax personal allowances unchanged at £9,300 for single persons and £18,600 for married couples.
Additional Personal Allowance for over 65’s remains at £2,020.
The threshold at which the higher rate for individuals becomes payable remains at £10,500.
Personal Allowance Credit reduced by £200 per person.
A National Insurance Rebate scheme is introduced to defray the employment costs of firms taking on additional employees.
Restriction of tax relief on mortgage interest, loan interest etc to lower tax rate of 10%.
Removal of Tax relief on maintenance payments and maintenance received is no longer classed as taxable income.
Increase in National Insurance Employees Primary threshold by £3 per week and Upper Earnings Limit by £20 per week.

Further information from :

Mark Shimmin, Chief Financial Officer,

The Treasury, Isle of Man

Telephone: (01624) 685586

Fax: (01624) 685662

2012-13 Budget

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