2016-17 Budget

Key features of the 2016-17 Isle of Man Budget include:

• A £1,000 increase in individual’s income tax personal allowance, to £10,500, lifting 2,000 of those on the lowest incomes out of the tax net and reducing tax bills for a further 19,000
• The 10% income tax band is retained but will apply to the first £8,500 of an individual’s taxable income, instead of the current £10,500 limit. No taxpayer is expected to be worse off as a result of the changes in banding and allowances
• A proposed Government Bond offering a secure investment opportunity for local savers while raising funds for capital projects
• The introduction of a penalty for those found to have avoided Manx income tax in contravention of general anti-avoidance provisions
• A new Land Development Tax Holiday offering income tax exemption up to five years for new commercial developments that help to create additional employment
• Additional transitional funding for the Health Service while it tackles escalating costs, particularly the cost of having to employ temporary staff at Nobles Hospital because of recruitment difficulties 

Other key points from the 2016-17 Budget:

• A new more transparent way of presenting Government’s financial information, including a revised Budget ‘Pink Book’ which now features commentary from each Department, Office and Board
• Establishment of the Enterprise Development Fund to support the delivery of the Enterprise Development Scheme with year one funding of £10m
• A capital programme of £93m is planned which includes construction and engineering work worth £71m, £23m more than the previous year
• Creation of a new £5m contingency fund to be available in exceptional circumstances, including extreme weather damage
• No change in income tax rates, Personal Allowance Credit or the ‘tax cap’
• Basic state pension to rise 2.9% in line with the UK, but no change to the Manx Pension Supplement. There will be an additional increase of £5 per week for the poorest pensioners, those on income support

Further information from: