New Tax Relief In Isle Of Man's Budget
by Jason Gorringe, Lowtax.net, London
18 February, 2016
The Isle of Man has announced an increase to the tax-exempt threshold for employer-paid relocation expenses and a new tax holiday for commercial real estate developments in its 2016/2017 Budget.
From April 6, 2016, the relocation expenses that can be paid without liability to tax by an employer when an employee moves to the island to take up full-time employment will increase to GBP20,000 (USD28,735). In addition, a Land Development Tax Holiday will newly offer an income tax exemption for up to five years for new commercial developments.
In addition, the Budget will raise the trivial commutation lump sum limit for any pension scheme or arrangement approved by the Manx Assessor to GBP50,000 and reduces the age at which it can be taken to 55. The level of fund remnant that can be paid as a lump sum is to increase to GBP50,000.
The Government has released draft guidance on these three aforementioned measures.
For individuals, the individual income tax exempt allowance is to be increased to GBP10,500, up from GBP9,500, and the 10 percent tax rate will be levied on income of up to GBP8,500 beyond that limit, down from GBP10,500 currently. Last, a new penalty of 60 percent, plus interest, will be introduced for those engaging in contrived avoidance arrangements from April 6, 2016.
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