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Isle of Man Budget 2015 is announced

ISLE OF MAN BUDGET 2015 IS ANNOUNCED

On 17 February 2015 Eddie Teare MHK, the Isle of Man's Treasury Minister, announced his budget for 2015.

Key features of the 2015-16 Isle of Man Budget include:

  • Government has achieved its aim of a rebalanced revenue budget, with provision for a £2m surplus.
  • A reduction in gross spending in real terms (after inflation) by over £9m or 1%.
  • Reintroduction of loan interest charged to Departments, to replenish the Capital Fund. Capital programme of £78m includes construction and engineering work worth £60m, £3m or 6% more than the previous year.
  • £2m increase to the Health Inspection Fund to help fund additional resources and projects arising from reviews of Noble's Hospital.
  • Creation of a £8.2m central contingency to offset unfunded inflationary and other contingency risk impacts to ease pressure on internal reserves.
  • A substantial (82.7%) increase in the Carer's Allowance paid to those who cannot work because they are providing full-time care to a severely disabled person. This is going up from £61.35 to £112.10 per week and will benefit around 320 carers at an additional cost of about £850,000 a year.
  • A new National Insurance 'holiday' scheme for employers taking on a person who has been long-term unemployed, long-term sick or recently released from prison
  • The 'tax cap', maximum individual income tax liability, to be increased from £120,000 to £125,000 for new entrants to the scheme. Mr Teare said the scheme would generate a direct economic benefit in the region of £125m over the next five years.
  • An increase from 10% to 20% in the income tax rate paid by companies on income from local land and property, expected to raise an additional £3m per year
  • Personal Allowance Credit to be reduced from £500 to £400 and to be restricted to the elderly or disabled with a taxable income of £9,500 or less. The Minister explained that PAC was still a potential disincentive to paid employment.
  • Income thresholds for means-tested entitlement to child benefit to be reduced by £10,000, saving around £1m a year. Families with annual incomes under £50,000 will be entitled to full benefit; reduced benefit will be payable to those on between £50,000 and £80,000; and families with income above £80,000 a year will no longer be entitled to child benefit.

For more information and the full text of the Budget speech please visit the Isle of Man Government Income Tax Division website:

http://www.gov.im/categories/tax-vat-and-your-money/2015-16-budget/