Personal tax

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Overview

Personal tax in the Isle of Man is pretty simple. Like the UK, our personal tax year runs from 6 April to 5 April each year.

Direct Taxes

Our direct taxes – comprising Income tax and National Insurance are administered by the Income Tax Division.

They are located in the Government building in Douglas. You can call in to see them at the public counter or you can reach them by telephone on +44 1624 685400 or email them on incometax@gov.im. You can also visit their website.

Current Tax Rates

All Island residents are subject to Income tax. The top rate is 20% and we have a single person’s allowance of £14500 – which is fully transferable between couples. See here for full details.

Manx taxpayers can opt to be ‘tax capped’ which means they can elect to pay a flat tax charge of £200,000 annually rather than be assessed at 20% of their income. The election must be for a minimum of 5 years and is worthwhile where expected annual earnings exceed £1m.

Capital Gains Tax

The Isle of Man does not levy capital gains tax.

Isle of Man tax residency

People relocating can become a tax resident immediately by (i) arranging accommodation on the Island (rented is fine) and (ii) forming an intention to stay here.

For more detail, you can see Isle of Man Government Practice notes PN144/07 and PN126/06 and also our articles Isle of Man tax explained for new residents and Unravelling the Mysteries of Isle of Man Tax Residency.

For an immediate consultation please contact Martin Katz

Email

question@katzand.co

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