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Tax and National Insurance

Isle of Man residents benefit from lower tax rates than a lot of countries in the EU and a simpler, more efficient system of calculation.

Income Tax

The Isle of Man operates a simple taxation regime with a lower rate of tax on individuals of 10% and an upper rate of 20% on personal income.

This means that a single person earning £20,000 in the tax year starting 6th April 2017 would pay £850 in tax (versus the UK where an individual earning £20,000 would pay £1,700 in tax).

The personal allowance (tax free earnings) for a single person is £12,500 and for a married couple £25,000 (for the tax year starting 6th April 2017).

There are a number of tax differences between the UK:

  • Isle of Man residents must complete an annual tax return
  • Tax relief is given on mortgage and loan interest, subject to certain conditions
  • Tax allowances for jointly assessed married couples can be transferred during the tax year
  • There is no Capital Gains Tax, Inheritance Tax or Stamp Duty

The Government offers an online tax service for returns, payments and notifications. You can sign up to this service on the Government website.

More information can be found on the Government website.

National Insurance

The National Insurance system is very similar to that of the UK. More information on contributions can be found on the Government website.

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