Allowances | 2020/21 (£) | 2019/20 (£) |
Single Person | 14,250 | 14,000 |
Married couple (combined) | 28,500 | 28,000 |
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 |
Reliefs | 2020/21 (£) | 2019/20 (£) |
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.
Individuals | Rate (%) | 2020/21 (£) | 2019/20 (£) |
Single person* | 10 | Up to 6,500 | Up to 6,500 |
20 | Above 6,500 | Above 6,500 | |
Married couple* | 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 election being made no later than 5 April 2020, a Manx resident’s tax liability will be fixed at £200,000 (or £400,000 for a married couple) for the five years commencing on 6 April 2020.
Companies | 2020/21 Rate (%) | 2019/20 Rate (%) |
Banking business | 0/10 | 0/10 |
Income from IoM land & 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%.
Car benefit - 2020/21 | Car Rate (£) | Fuel Rate (£) |
Cylinder capacity Electric cars (regardless of capacity) |
Nil | Nil |
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 2019/20.
Other Taxable benefits | Taxable amount |
Accommodation | Cash equivalent |
Use of an asset | 20% of market value (or cost to employer if higher) |
Other | Cost to employer |
Flexible pension options exist via either of two common types of IoM scheme, being a Self-Invested Personal Pension (SIPP) and a new type of scheme, the Pension Freedom Scheme (PFS). A comparison of the key features of the two types of scheme is below:
Current Schemes | Pension Freedom Schemes | |
Maximum contribution - Pre 6 April 2018 Post 5 April 2018 |
£300,000 £50,000 |
N/A £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 (with treaty relief if applicable)* | ITIP (with treaty relief if applicable) |
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 |
*Income restricted based on published limits
Rates 2020/21 and 2019/20 | Rate (%) |
Plant & Machinery - first year allowance writing down allowance |
100 25 |
Industrial Buildings & Structures - first year allowance writing down allowance |
100 4 |
Agricultural Buildings - first year allowance writing down allowance |
100 10 |
Tourist Premises - first year allowance writing down allowance |
100 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.
Class 1: Employee ** | (%) | |
2020/21 | ||
Earnings bracket (weekly) up to £138 | Nil | |
£138.01 to £823 | 11 | |
over £823 | 1 | |
2019/20 | ||
Earnings bracket (weekly) up to £125 | Nil | |
£125.01 to £784 | 11 | |
over £784 | 1 | |
Class 1: Employer ** | 2020/21 (%) | |
Earnings bracket (weekly) up to £138 | Nil | |
over £138 | 12.8 | |
Classes 2 and 3 | 2020/21 (£) | 2019/20 (£) |
Class 2 (self employed flat rate) | ||
Per week | 5.40 | 5.40 |
Small earnings exception (year) | 7,176 | 6,500 |
Class 3 (voluntary) | ||
Per week | 15.30 | 15.00 |
Class 4 (self employed) | (%) | |
2020/21 | ||
up to £7,176 | 0 | |
£7,176.01 to £42,796 | 8 | |
over £42,796 | 1 | |
2019/20 | ||
up to £6,500 | 0 | |
£6,500.01 to £40,768 | 8 | |
over £40,768 | 1 |
* Standard rates are shown. These figures may alter if an employee elects to contract out.
** Class 1A and 1B contributions are not charged in the Isle of Man.
From 6 April 2019 certain new residents and returning students will be able to apply for a refund of the Class 1 NIC's paid as employees during the first 12 months of their employment here. This scheme is to continue for a further year starting 6 April 2020 (finishing 5 April 2021).
(£) | |
Incorporation fees | |
Standard - within 48 hours | 100 |
2 hour incorporation | 250 |
While you wait incorporation | 500 |
Annual filing fees* | |
Standard | 380 |
Excepted companies and LLC’s | 95 |
*Increased fees apply where returns are filed late.