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

New Residents

Residence in the Isle of Man

The Income Tax Division has published a Practice Note (PN 144-07) regarding residence in the Isle of Man. If you have any queries regarding your residence status please contact us on (01624) 685400.

I will be taking up residence in the Isle of Man is there anything I need to do?

As soon as possible you should complete Form R25 Registration for Manx Income Tax and return it to the Income Tax Division, or contact the Assessor of Income Tax so that appropriate returns and any advice on income tax liability can be issued.

It is important to remember that your employer is not responsible for registering you for tax. Your application for a work permit and your registration with Department of Social Care does not register you for tax.

There are a number of significant differences between the United Kingdom and the Isle of Man taxation system:

All taxpayers (with few exceptions) complete an income tax return form every year declaring their worldwide income
Penalties will be applied if return forms are not submitted within six months of issue. Return forms are ordinarily issued on 6 April for the preceding tax year
Tax allowances for jointly assessed married couples can be transferred during the tax year, and both spouses can be pursued for the joint tax liability
There are no additional tax allowances or credits for having children, however an additional personal allowance may be available if you are a single parent with a child under 19 years old and in full-time education
Tax relief is given on mortgage and loan interest, subject to certain conditions
Banks and building societies do not deduct tax at source, therefore all interest received must be declared on the income tax return form
There is no Capital Gains Tax and there is no Inheritance Tax

What are the rates of Income Tax in the Isle of Man?

The current rates of income tax can be found here

In the Isle of Man an individual’s income tax liability will be capped at £120,000 (which is doubled in the case of a jointly assessed married couple) in relation to all income types. A Practice Note has been published on this subject here.

If I move to the Isle of Man are there any allowances to resident individuals?

If you move to the Isle of Man you will be entitled to claim the same personal allowances as any other Manx resident which will be apportioned depending on the date when you take up residence.

Are there any deductions of Income Tax at source on the Isle of Man?

For employment or if you are receiving an occupational pension, a form of pay-as-you-earn known as Income Tax Instalment Payments (ITIP) is applied against your income. The weekly or monthly deduction is calculated by the employer using a code based upon the individuals allowable deductions and allowances.

What is the basis of assessment?

All income sources for individuals are charged on a current year basis. This being the income of the year of assessment. For example, the 2008/2009 year of assessment is based on the income of the year ending 5 April 2009.

Is there any Double Taxation Relief?

The Isle of Man has a number of taxation agreements with various countries in place. Please refer to the section on International Agreements for further information.

Where a double taxation agreement does not exist with a country, relief may still given for any income which suffers foreign taxation and proof of the tax suffered is submitted. The relief is based on the lower of the overseas rate of tax or the Isle of Man marginal rate of tax.

See Frequently Asked Questions for further information regarding new residents.