Tax and National InsuranceIsle of Man residents benefit from lower tax rates than a lot of countries in the EU and a simpler, more efficient system of calculation.
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.
The personal allowance (tax free earnings) for a single person is £13,250 and for a married couple £26,500 (for the tax year starting 6th April 2018).
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 National Insurance system is very similar to that of the UK. More information on contributions can be found on the Government website.