Pension schemes and arrangements are approved in the Isle of Man under the following enactments:
- Income Tax (Retirement Benefit Schemes) Act 1978 – Occupational Schemes
- Part 1 Income Tax Act 1989 – Personal Pension Schemes
- Section 50B Income Tax Act 1970 – International Schemes
An approved scheme enjoys significant tax free benefits, including tax relief on contributions made by the member of the scheme or by an employer, tax exempt income growth on investments and tax free lump sum benefits.
Following a period of public consultation during 2006/2007 and the publication of the Income Tax (Pensions) Bill, very significant changes have been proposed that will soon be considered by the Branches of Tynwald. These changes are scheduled to be introduced from 6 April 2008.
The Bill will amend the Income Tax (Retirement Benefit Schemes) Act 1978 and Part 1 of the Income Tax Act 1989, to implement the changes set out in the Taxation of Pensions – Consultation Response Document, published on 20 March 2007.
To assist interested parties the Division has also published:
- a proposal document providing more information in relation to the changes included in the Bill;
- the Income Tax (Retirement Benefit Schemes) Act 1978 and the Income Tax Act 1989 including the proposed amendments; and
- the slides from the Practioners Seminars held by the Income Tax Division.
Further information will be made available through this website as the Bill progresses