How will the Manx Budget affect you?

govt-officeThe Manx Budget 2018 has been announced 

How will the 2018 Manx Budget affect you?

An additional 1,700 people will no longer have to pay any income tax, the Isle of Man’s treasury minister has announced during his budget speech.

Alfred Cannan said it shows the Manx government is committed to “supporting those on lower and middle incomes”.

The income tax allowance will increase by £750 to £13,250. Individuals will benefit by up to £150 a year while couples could be £300 better off.

Mr Cannan added: “We are working hard to put more money in people’s pockets.”

“Middle and lower earners have been hit badly over the past 10 years,” he said.

For 2018-19, the lower rate of income tax on the Isle of Man will remain at 10%, as will the higher rate of 20%.

Other measures announced in the budget include:

  • Child benefits to increase by 3.3%
  • A 3% rise in the basic state pension
  • an increase to the personal income tax allowance of £750 to £13,250
  • basic rate tax to remain at 10% and higher rate tax at 20%
  • introduction of new pension freedoms
  • pension triviality limit increased to £100,000
  • benefit in kind incentive to encourage cycling to work to be extended to include electric bikes
  • anti-avoidance provisions re payments to participators relating to sales of goodwill or unquoted shares
  • A five-year capital investment plan (worth £428m) to replace Castle Rushen High School, extend Queen Elizabeth II High School and improve national glens and footpaths
  • A 10% increase in nursing care contributions.

During his budget speech Mr Cannan said a £18.2m surplus in government accounts for this year means “more funding for public services” and more investment into the national reserves.

Some £5.5m of the surplus will be allocated to health and social care services, while £3.1m will be spent “improving the condition of the island’s roads”, the government said.

The Treasury also plans to allocate £1.5m to boost pre-school credits for working parents – this will see a jump in the maximum available grant from £1,700 per child to £3,420.

“This is all part of a focused package of support to ensure that everyone can share in the island’s success,” continued Mr Cannan.

“We are investing in the Isle of Man’s future with confidence by pursuing progressive, affordable and sustainable policies to help all sectors of the community.”

If you wish to discuss any of the topics please do get in touch with us

Pam Harvey

Bookmark the permalink.

Comments are closed