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Isle of Man Government
Reiltys Ellan Vannin
Isle of Man Government Crest

Income Tax

Government Offices
Buck's Road, Douglas
Isle of Man IM1 3TX
Enquiries:
+44 (0) 1624 685400

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Call Monitoring Policy

You are here: www.gov.im - Treasury - Income Tax and National Insurance - Tax Practitioners and Technical Information - Rates and Allowances

Personal Allowances

INCOME TAX PERSONAL ALLOWANCES 2012/2013

Single Person £9,300
Married Couple (combined) £18,600
Additional Personal Allowance£6,400
Blind Person£2,900
Disabled Person £2,900
Age Allowance*£2,020

INCOME TAX RATES

Standard Rate 10%
Higher Rate20%
Non-Resident Rate 20%

STANDARD RATE TAX THRESHOLDS

Single Person £10,500
Married Couple (combined) £21,000
Balance taxable at20%

PREVIOUS YEARS RATES AND ALLOWANCES

 04/0505/0606/07 07/0808/0909/1010/1111/12
Standard rate10%10%10%10%10%10%10%10%
Single person lower rate band1000010300105001050010500105001050010500
Married couple lower rate band2000020600210002100021000210002100021000
Higher rate18%18%18%18%18%18%20%20%
Non-resident rate18%18%18%18%18%18%20%20%
Single allowance82258500867088509200920093009300
Additional personal allowance**56305800592060406300630064006400
Blind persons / Disabled persons25302610266527202850285029002900
Age allowancen/an/an/an/a2000200020202020
Non-resident allowancen/an/a200020402120212000
Mortgage and Loan Interest limit***n/an/an/an/a1500015000100007500
BIK**** exemption (not car benefit)400400400400400400400400
Nursing expense limit82258500867088509200920093009300
Educational deed of covenant55005500550055005500550055005500
Charitable Donations55005500550060007000700070007000
Private medical insurance limit18001800180018001800180018001800
Homestay (TT fortnight only)75075075015001500150015001500

IMPORTANT NOTE - From 6 April 2012, tax relief for certain general deductions is restricted to 10% for individuals. The general deductions affected are; interest paid on mortgages or loans, charitable donations or deeds of covenant, private medical insurance payments, nursing expenses and educational deeds of covenant entered into on or before 5 April 2011 and where the student is in qualifying full time education at that date. For tax years prior to 2012/13, general deductions were treated as reducing an individual’s taxable income and tax relief was therefore given at the individual’s effective rate of income tax. From 6 April 2012, 10% tax relief for the affected general deductions will be treated as reducing an individual’s total liability.

* Age allowance is available for resident individuals who are aged 65 or over at the start of the tax year. For jointly assessed couples, the allowance is doubled where both spouses are over the age of 65 at the start of the tax year

** Single parent additional allowance

*** Mortgage and Loan Interest limit is for a single person, limit is doubled for a jointly assessed couple

**** Benefit in Kind

Interest and Repayment Supplement rates can be found here

Further details and guidance on allowances and reliefs are available in the GN1 return form guide

For information on VAT see here

NATIONAL INSURANCE RATES AND THRESHOLDS

Item (per week unless stated otherwise)2011/12 2012/13
Lower Earnings Limit, Class 1 (LEL)£102£107
Upper Earnings Limit, Class 1 (UEL)£750£770
Primary Threshold£115£118
Secondary Threshold£115£115
Prescribed annual equivalent of primary and secondary thresholds £5,980£6,136
Class 1 employees' primary rate of NI (between primary threshold and UEL) 11%11%
Class 1 employees' additional rate of NI (above the UEL)1%1%
Class 1 employers' rate of NI (on all earnings above secondary threshold)12.8%12.8%
Employee's contracted-out rebate (COSR schemes only)1.6%1.6%
Employer's contracted-out rebate, salary related scheme (COSR)3.7%3.7%
Employer's contracted-out rebate, money purchase scheme (COMP)1.4%abolished from 6/4/12
Class 2 rate self-employed£2.50£2.65
Class 2 small earnings exception level (annual)£5,315£5,595
Class 2 rate for volunteer development workers£5.10£5.35
Class 2 for share fishermen£3.15£3.30
Class 3 voluntary contributions£12.60£13.25
Class 4 lower profits limit (annual)£5,980£6,136
Class 4 upper profits limit (annual)£39,000£40,040
Class 4 rate between the lower and upper limits8%8%
Class 4 rate above the upper limit1%1%