Budget

Isle of Man Budget Update at a glance

• The income tax personal allowance will remain at £14,500 for a resident individual and £29,000 for a jointly assessed couple
  
  
• For higher earners, the personal allowance will be tapered and reduced by £1 for every £2 that a person’s total income is above £100,000 (£200,000 for jointly assessed couples). This means if a person’s total income is £129,000 (£258,000 for jointly assessed couples) or above their personal allowance will be zero
  
  
• The income tax lower rate for individuals remains at 10% and the higher rate at 20%. The threshold at which the higher rate of income tax becomes payable remains at £6,500 for an individual and £13,000 for a jointly assessed couple
  
  
• The first £600 of any general benefits in kind, provided to an employee by an employer, will be exempt from income tax. Only the amount above £600 will now be taxable. This will not apply in respect of accommodation and associated expenses. The treatment of bicycles, cars and fuel remains unaffected
  
  
• The National Insurance Holiday Scheme is amended as follows from 6 April 2023:
  • The maximum value of a refund is increasing from £4,000 to £4,400
  • The minimum annual gross salary which must be earned in order to qualify for a refund is increasing from £21,000 to £23,000
  • The requirement to work a minimum number of hours to qualify for a refund is being removed
    
    
• The National Insurance thresholds and upper earnings limit will be increased by 5%. Class 2 and Class 3 rates will be increased accordingly

Key rises in the following benefits:

• Pensioners
  • Following the restoration of the ‘triple lock’ uprating -
  • Basic state pension (10.1%)
  • Additional pension – ‘SERPS’ (10.1%)
  • Manx State Pension – up to full amount (10.1%)
  • Manx State Pension – protected amounts (10.1%)
    
    
• Family/Other
  • Maternity allowance, adoption allowance and paternity allowance (16.8%)
  • Child Benefit (9.8%)
  • Employed Person’s Allowance – basic allowances and allowances for children (9.8%)
    
    
• Disability
  • Carer’s Allowance (10.7%)
  • Attendance Allowance (9.8%)
  • Disability Living Allowance (9.8% generally, 10.1% for higher rate mobility component)
  • Income Support Carer Premium (17.1%)
  • Income Support Disability and Disabled Child Premiums (9.8%)
  • Nursing Care Contribution (10.1%)
    
    
• The increase in Carer’s Allowance will benefit almost 600 carers
  
  
• Around 19,000 pensioners will see their State Pension increased by 10.1%
  
  
• Approximately 3,500 individuals and families of working age on low incomes will benefit from increases in Employed Person’s Allowance, Income Support and income-based Jobseeker’s Allowance
  
  
• Economic Strategy Fund established with funding of £100 million to support delivery of the Economic Strategy for the Island
  
  
• A five-year capital investment programme worth £442.4 million, with £233.5 million allocated to Central Government schemes
  
  
• The Healthcare Transformation Fund will be topped up by a further £3.5 million to support the ongoing implementation of recommendations from the Sir Jonathan Michael report