Isle of Man Budget 2006-07 - Isle of Man Treasury Department Website

2006-07 ISLE OF MAN BUDGET AT A GLANCE

Hon Allan Bell MHK - Treasury Minister

Zero tax rate to apply to all resident and non-resident non-regulated trading businesses in line with the approved Modified Taxation Strategy;
£39.3 million or 8.2% increase in net Departmental revenue spending on public services;
Personal Allowances Credit band remains at £2,500 for individuals who do not fully utilise personal allowances, with the maximum Personal Allowance Credit increased by 40% to £350;
Income tax personal allowances increased by 2% to £8,670 for single persons and £17,340 for married couples;
Personal income tax standard rate stays at 10%, with the higher rate remaining at 18%;
Tax cap on total income tax payable per person of £100,000 or £200,000 per married couple introduced;
Non-taxable benefits removed from Personal Allowance Credit calculation;
Additional funding for Social Security targeted at low income groups;
Income tax rate for land and property income remains at 10%;
Corporate Charge at £250 to be introduced, payable on 1st January 2007;
Exempt company fees remain at £475; Exempt Companies to cease from 2007-08;
£8.3 million surplus expected in 2006-07; £11.8 million surplus in the current year;
Capital programme at £100.5 million to be financed without recourse to external borrowing;
Income Tax personal allowances increased by 2% -
- Single Person’s Allowance £8,670
- Married Couple’s Allowance £17,340
- Single Parent Allowance £14,590 (including Single Person’s Allowance)
- Registered Blind Person Additional Allowance and Disabled Person Allowance £2,665
Thresholds at which higher rate becomes payable increased by around 2% -
- Single Person increased to £10,500 of taxable income;
- Married Couple increased to £21,000 of taxable income, fully transferable between husband and wife;
Single persons may have incomes of £19,170 before paying tax at the higher rate of 18%, whilst for married couples this figure is £38,340;