Tax Matters 2023/24

A guide to Isle of Man taxes

Tax rates for the year 2023 - 2024

Income Tax

Allowances

23/24 (£)

22/23 (£)

Single Person

14,500

14,500

Married couple/ civil partners (combined)

29,000

29,000

Blind person’s addition

2,900

2,900

Single parent’s addition

6,400

6,400

Disabled person’s addition

2,900

2,900

Co-habiting couple’s addition

6,400

6,400

Aged addition

Nil

Nil

Non-resident’s personal allowance

Nil

Nil

War Pensioners Mobility Supplement

2,900

2,900

     

Reliefs

23/24 (£)   

22/23 (£)

Interest paid to Manx residents lenders (maximum)*   

5,000

5,000

Covenanted educational payments*

5,500

5,500

Charitable donations*

7,000

7,000

Charitable donations by a company

15,000

15,000

Nursing expenses*

12,500

12,500

 

* Tax relief is restricted to 10% of the amount paid and in respect of educational deeds of covenant is restricted to payments made under covenants that have been entered into on or before 5 April 2011 and where the student is in qualifying full time education at that date.

Rates

Individuals                      

Rate (%)           

23/24 (£)          

22/23 (£)        

Single person*         

10       

Up to 6,500

Up to 6,500

 

20

Above 6,500

Above 6,500

Married couple/civil partners* 

10

Up to 13,000

Up to 13,000

 

20

Above 13,000

Above 13,000

Non resident

20

All

All

 

* Subject to an irrevocable Tax Cap election being made, individuals have the option to elect for a ten year period, with the five year election also remaining available. The maximum income tax liability for an individual who has made the election is £200,000, or £400,000 for a jointly assessed couple. For any five year Tax Cap elections which commenced up to and including the 2019/20 tax years, the amount charged for each year is the value of the Tax Cap applicable in the first tax year covered by the election.  

Companies                                             

23/24 Rate (%)       

22/23 Rate (%)    

Banking business

0/10

0/10

Income from IoM land and property

20

20

Retail business*

0/10

0/10

Other

0

0

 

* Retail businesses with taxable profits of over £500,000 are subject to tax at 10%, those with taxable profits below that level are subject to tax at 0%.

Value Added Tax

  • Standard rate 20%
  • Lower rates of 0% or 5% apply in certain circumstances.
  • Registration threshold from 1 April 2023 £85,000 (2022 - £85,000).

Inheritance Tax

There are no inheritance, wealth, gift, death, capital gains, insurance premium taxes, or stamp duties in the Isle of Man.

National Insurance Contributions

Standard rates are shown. These figures may alter if an employee elects to contract out.

Class 1A: Employee**                  

23/24 (%)                       

22/23 (%)                      

  • Earnings bracket (weekly) up to £145

Nil

Nil

  • £145.01 to £864

11

11

  • Over £864

1

1

Class 1B: Employer** (%)

  • Earnings bracket (weekly) up to £123

Nil

 

  • Over £123

12.8

 

Class 2 (self employed flat rate) (£)

  • Per week

5.70

5.40

  • Small earnings exception (year)

7,540

7,176

Class 3 (voluntary) (£)

  • Per week

17.45

15.85

Class 4 (self employed) (%)

  • Up to £7,540 (from £7,176 in 22/23)

0

0

  • £7,540 to £44,928  (from £7,176.01 to £42,796 in 22/23)

8

8

  • Over £44,928  (from £42,796 in 22/23)

1

1

 

** Class 1A and 1B contributions are not charged in the Isle of Man.

Benefits in Kind

 

Car benefit 23/24

Car rate (£)          

Fuel rate (£)

Electric cars (not hybrid)      

Nil

Nil

 

Cylinder capacity:  

 

 

1,000 or less

800

800

1,001 - 1,200

1,100

950

1,201 - 1,800

3,600

1,500

1,801 - 2,500

5,000

1,750

2,501 - 3,500

7,000

2,000

3,501 - 5,000

10,000

2,250

More than 5,000

12,000

2,500

 

Note: These rates are unchanged from 2022/23.

Other taxable benefits                            

Taxable amount          

Accomodation

Cash equivalent

Use of an asset

20% of market value (or cost to employer if higher)

Other

Cost to employer

Chargeable benefits with an aggregate value of under £600 for the year are exempt from tax.

Exempt benefits

  • Accommodation used solely for duties of employment.

  • Approved Profit Sharing or Savings Related Share Options Schemes.

  • Car Parking space at or near place of work.

  • Medical/dental insurance.

  • Christmas party expenses up to £100 per head.

  • Provision of a personal computer for use at home up to benefit value of £1,000.

  • Nursery or creche facility expenses necessary for employees to attend work.

  • Bicycle and related safety equipment provided under a cycle to work scheme up to an annual maximum value of £1,200.

Company fees and duties

Incorporation fees                                                               

(£)

Standard - within 48 hours

100

2 hour incorporation

250

While you wait incorporation

500

Annual filing fees*



Standard

380

Excepted companies and LLCs

95

 

* Increased fees apply where returns are filed late.

Personal Pensions and Retirement Annuities

Flexible pension options exist via either of two common types of IoM scheme, being a Self-Invested Personal Pension (SIPP) and the Pension Freedom Scheme (PFS). 

A comparison of the key features of the two types of scheme is below:

 

Self Administered Personal Pension

Pension Freedom Scheme

Maximum annual contribution                                                                       

£50,000

£50,000

     

Minimum age for receiving benefits                                             

50 or 55

55

     

Tax free lump sum

Up to 30%

Up to 40%

     

Tax treatment of payments in excess of the tax free lump sum                                         

ITIP*

ITIP*

     

Transfers from current IoM scheme to a PFS

10% charge withheld at source from transfers out of the PFS                                        

10% charge withheld at source from transfers into the PFS     

     

Amount charged on residue paid out on death  

7.5% if scheme is not drawn down

Nil

 

* With treaty relief if applicable. Income restricted based on published limits.

Capital Allowances

Rates 23/24 and 22/23 (%)  

Plant and machinery
  • First year allowance - 100
  • Writing down allowance - 25
Industrial buildings and structures
  • First year allowance - 100
  • Writing down allowance - 4
Agricultural buildings
  • First year allowance - 100
  • Writing down allowance - 10
Tourist premises
  • First year allowance - 100
  • Writing down allowance - 10

For a motor car a first year allowance/writing down allowance of 25% may be claimed each year up to a maximum of £3,000 per annum.

Follow PwC Isle of Man

Contact us

Ferran Munoz-Lopez

Ferran Munoz-Lopez

Partner, Advisory Leader, PwC Isle of Man

Tel: +44 (0) 1624 689687

Kate Brummitt

Kate Brummitt

Tax Manager, PwC Isle of Man

Tel: +44 (0) 1624 689489

Alexander Lea

Alexander Lea

Tax Manager, PwC Isle of Man

Tel: +44 (0) 1624 689729

Holly Roriston

Holly Roriston

Tax Manager, PwC Isle of Man

Tel: +44 (0) 1624 689482

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