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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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You are here: www.gov.im - Treasury - Income Tax and National Insurance - Individuals - Residents - Rates and Allowances

Personal Allowances

INCOME TAX PERSONAL ALLOWANCES 2013/2014

Single Person £9,300
Jointly Assessed Couple £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 07/0808/0909/1010/1111/1212/1313/14
Standard rate10%10%10%10%10%10%10%10%10%10%
Single person standard rate band10000103001050010500105001050010500105001050010500
Married couple standard rate band20000206002100021000210002100021000210002100021000
Higher rate18%18%18%18%18%18%20%20%20%20%
Non-resident rate18%18%18%18%18%18%20%20%20%20%
Single allowance8225850086708850920092009300930093009300
Additional personal allowance**5630580059206040630063006400640064006400
Blind persons / Disabled persons2530261026652720285028502900290029002900
Age allowancen/an/an/an/a200020002020202020202020
Non-resident allowancen/an/a20002040212021200000
Mortgage and Loan Interest limit***n/an/an/an/a150001500010000750075007500
BIK**** exemption (not car benefit)400400400400400400400400400400
Nursing expense limit8225850086708850920092009300930093009300
Educational deed of covenant5500550055005500550055005500550000
Charitable Donations5500550055006000700070007000700070007000
Private medical insurance limit1800180018001800180018001800180018001800
Homestay (TT fortnight only)7507507501500150015001500150015001500

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)2012/132013/14
Lower Earnings Limit, Class 1 (LEL)£107£109
Upper Accrual Point (UAP)n/a£770
Upper Earnings Limit, Class 1 (UEL)£770£784
Primary Threshold£118£120
Secondary Threshold£115£117
Prescribed annual equivalent of primary threshold£6,136£6,240
Prescribed annual equivalent of secondary threshold£5,980£6,084
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%
Class 2 rate self-employed£2.65£2.70
Class 2 small earnings exception level (annual)£5,595£5,725
Class 2 rate for volunteer development workers£5.35£5.45
Class 2 for share fishermen£3.30£3.35
Class 3 voluntary contributions£13.25£13.55
Class 4 lower profits limit (annual)£6,136£6,136
Class 4 upper profits limit (annual)£40,040£40,768
Class 4 rate between the lower and upper limits8%8%
Class 4 rate above the upper limit1%1%