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Isle of Man: Personal Taxation

Income Tax

This page was last updated on 25 February 2020.

Income is comprehensively defined and includes employment income and benefits (defined more or less as in the UK), income from property (less expenses and capital allowances) pensions, income from a trade or profession, and investment income. Pension contributions are mostly not taxed. Most types of interest, dividend and royalty payment originating on the island and paid to non-residents are exempt from tax.

The Isle of Man operates a deduction scheme for employment income under the Income Tax (Instalment Payments) Act 1974 as amended; this is quite similar to the UK’s ‘pay as you earn’ system.
For the 2019-2020 tax year, the personal allowance stands at GB£14,500. A full table of tax rates for individuals is given in the table below.

Income
GB£
Tax Rate
0 - 14,250 nil
14,251 - 20,750 10%
Over 20,750 20%

For a jointly assessed couple, the above amounts are doubled.

There is a tax cap of £175,000 for an individual and £350,000 for a jointly assessed couple. Once a taxpayer has opted for the tax cap to apply, it then applies automatically for the next five years.

 

 

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