- 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
