Government Offices
Buck's Road, Douglas
Isle of Man IM1 3TX
Enquiries:
+44 (0) 1624 685400
As a Manx resident tax payer, you are entitled to claim certain deductions when you submit your tax return. Provided we have all the information required to assess your position, these amounts will be used to reduce your tax liability.
Some examples of current allowable deductions are:
* Please note that a written agreement must be submitted to the Income Tax Division. The date of the first payment under the Deed must not be earlier than the date on which the Deed is made.
Only payments made under covenants that have been entered into on or before 05 April 2011 and where the student is in qualifying full time education at that date are eligible for income tax relief.
Any amount claimed, once verified, will reduce the amount of tax you need to pay. For example, if you have a total annual income of £15,000 a year and you pay £2,000 a year in mortgage interest, your income would be reduced to £13,000 for income tax purposes.
Before deductions can be granted you will need to provide certain evidence to the Income Tax Division that you have paid the amounts you are claiming. For example, if you claim mortgage or loan relief then your lender will send you a certificate of interest paid for the year - this should then be submitted with your Income Tax return form. The guidance notes contained within your annual tax return clearly state what documents may be required when claiming any deductions, so this should always be used as a reference.
It is important to remember that certain deductions are subject to limits and restrictions, and any relief granted must be within these set parameters and conditions. For example, with effect from 6 April 2011, mortgage and loan interest relief will be capped at £7,500 in total.
The return form guide contains details of limits and restrictions and further details on how to claim the reliefs detailed above.
Additional personal allowances are available for:
A claim for Blind Persons Allowance or Disabled Persons Allowance is made on the annual return form.
The Age Allowance is automatically applied for all resident individual aged over 65 at the start of the tax year. The amount of the allowance will be £2,020 with a pro-rata reduction where a person has ceased or commenced residence in the Isle of Man during the tax year. For jointly assessed married couples, the allowance will be doubled to £4,040 where both spouses are over the age of 65 at the start of the tax year. Any unutilised balance of the allowance can be transferred between spouses in the year of marriage or to the surviving spouse on death.
See Frequently Asked Questions for further information regarding tax relief.
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