1. PERSONAL TAXATION
- INCOME TAX RATES
|
IOM |
RATE |
|
£1 - £10,500 |
10% |
|
Over £10,500 |
18% |
|
Non-Resident Rate |
18% |
|
Individual income tax liability is capped at £100,000 or £200,000 if jointly assessed |
|
|
UK* |
RATE |
|
£0 - £2,440 on savings income only |
10% |
|
Basic Rate |
20% |
|
Higher rate on income over £37,400 |
40% |
*A rate of 50% on those earning in excess of £150,000 will be introduced in the UK for the tax year 2010/11.
- PERSONAL ALLOWANCES
|
IOM |
£ |
|
Single Person |
9,200 |
|
Married Couple |
18,400 |
|
Non-Resident |
2,120 |
|
Age Allowance |
2,000 |
|
UK |
|
|
Under age 65 |
6,475 |
|
Age 65 – 74 |
9,490 |
|
Age 75 and over |
9,640 |
|
UK Married Couple/Civil Partners |
|
|
(minimum) at 10% where at least one spouse/ partner born before 06/04/1935 |
2,670 |
|
Age less than 75 and born before 6/4/1935 |
N/A |
|
Age 75 and over |
6,965 |
- IOM MORTGAGE INTEREST AND LOAN INTEREST
Tax relief is granted pound for pound in the Isle of Man on interest paid to Manx resident lenders up to £15,000 per individual.
- INCOME TAX: EXAMPLE CALCULATIONS
Taxpayer, single, aged 30 with an income of £100,000 pa.
|
IOM: |
£ |
|
|
Total income |
100,000 |
|
|
Less allowance |
(9,200) |
|
|
Taxable income |
90,800 |
|
|
£10,500 x 10% |
1,050 |
|
|
£80,300 x 18% |
14,454 |
|
|
Tax payable |
15,504 |
|
|
UK: |
£ |
|
|
Total income |
100,000 |
|
|
Less allowance |
(6,475) |
|
|
Taxable income |
93,525 |
|
|
£37,400 x 20% |
7,480 |
|
|
£56,125 x 40% |
22,450 |
|
|
Tax payable |
29,930 |
|
- INHERITANCE TAX (IHT)
IOM
There is no charge to IHT in the Isle of Man.
UK
The threshold at which IHT is payable is currently £325,000 above which IHT is payable at 40% (subject to exemptions and reliefs).
- CAPITAL GAINS TAX (CGT)
IOM
There is no charge to CGT in the Isle of Man.
UK
Gains on chargeable assets are currently taxed at 18%.
- VAT
Both the IOM and UK VAT rates are currently 15% returning to 17.5% from 1st January 2010.
Under the flexibility provided by the Customs & Excise Agreement with the UK, the Isle of Man applies a reduced 5% rate of VAT to certain supplies including hotel accommodation, gas and electricity.
- STAMP DUTY
IOM
There is no stamp duty payable in the Isle of Man.
UK
Stamp Duty Land Tax (based on consideration)
|
Commercial property: |
|
|
Over £150,000 - £250,000 |
1% |
|
Residential property: |
|
|
Over £175,000* - £250,000 |
1% |
|
(*£125,000 from 1/1/2010 or £150,000 in disadvantaged areas) |
|
|
All property: |
|
|
Over £250,000 up to £500,000 |
3% |
|
Over £500,000 |
4% |
2. CORPORATE TAXATION
- ISLE OF MAN COMPANY TAX RATES
General rate of corporate income tax = 0%
Higher rate of 10% corporate income tax on income from the following sources:
- Income arising from banking business
- Income derived from land and property situated in the Isle of Man
- ATTRIBUTION REGIME FOR INDIVIDUALS
For accounting periods commencing on or after 6th April 2008 Isle of Man resident individuals having an interest in a "relevant company" will be liable to Manx income tax on their share of attributed profits from that company.
- CORPORATE CHARGE
An annual charge of £250 is collected as part of a company's annual return filing fee.
- UK CORPORATION TAX
|
PROFITS (£) |
RATE (%) |
|
0 – 300,000 |
21 |
|
300,001 – 1,500,000 |
29.75 |
|
1,500,001 and over |
28 |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.