Tax relief

As an Isle of Man resident tax payer, you may be entitled to claim additional allowances and or deductions based on your personal circumstances. This page provides a general overview of the tax relief available.

Additional allowances

Additional personal allowances are available to resident tax payers who meet certain qualifying conditions. The Additional allowances are:

Further information regarding the additional allowances and how to claim can be found in the return form guides GN1 and GN1S. 

Deductions

As an Isle of Man resident tax payer, you are entitled to claim certain deductions. Provided the Income Tax Division have all the information required to assess your position, these amounts will be used to reduce your tax liability and can be included in a tax code to reduce your weekly/monthly tax deductions (if applicable). 

Examples of current deductions are:

  • Charitable Deed of Covenant
  • Charitable Donations
  • Loan Interest
  • Mortgage Interest
  • Nursing Expenses
  • Personal Pension Contributions
  • Private Medical Insurance
  • Professional Subscriptions
  • Superannuation
  • Tools and Clothing 

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 2017, the maximum amount of mortgage and loan interest for which a single person can claim tax relief is £5,000. 

Relief for certain general deductions is also restricted to the lower tax rate of 10% and the tax relief will be treated as reducing an individual's total income tax liability. The general deductions affected are: interest paid on mortgages or loans; charitable donations or deeds of covenant; private medical insurance payments; and nursing expenses.  

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 interest relief, your lender should send you a certificate of interest paid for the year - this should then be submitted with your return. 

You may also be interest in other information related to deductions: 

Guidance Note GN14 – Private Medical Insurance

Practice Note – 172/12 - Restriction on general deductions

Practice Note – 201/18 – Maximum contributions to Personal Pension Contributions and Superannuation