The Isle of Man 2023-24 Budget was presented on 21 February 2023. An overview of the budget measures from the Treasury includes the following:

• The income tax personal allowance will remain at IMP 14,500 for a resident individual and IMP 29,000 for a jointly assessed couple;
• For higher earners, the personal allowance will be tapered and reduced by IMP 1 for every IMP 2 that a person’s total income is above IMP 100,000 (IMP 200,000 for jointly assessed couples). This means if a person’s total income is IMP 129,000 (IMP 258,000 for jointly assessed couples) or above, their personal allowance will be zero;
• The income tax lower rate for individuals remains at 10% and the higher rate at 20%, and the threshold at which the higher rate of income tax becomes payable remains at IMP 6,500 for an individual and IMP 13,000 for a jointly assessed couple;
• The first IMP 600 of any general benefits in kind, provided to an employee by an employer, will be exempt from income tax, although this will not apply in respect of accommodation and associated expenses, and the treatment of bicycles, cars, and fuel remains unaffected;
• The National Insurance Holiday Scheme is amended as follows from 6 April 2023:
  • the maximum value of a refund is increasing from IMP 4,000 to IMP 4,400;
  • the minimum annual gross salary which must be earned in order to qualify for a refund is increasing from IMP 21,000 to IMP 23,000; and
  • the requirement to work a minimum number of hours to qualify for a refund is being removed;
• The National Insurance thresholds and upper earnings limit will be increased by 5%. Class 2 and Class 3 rates will be increased accordingly

Click the following link for Practice Note (PN) 220/23, which provides further detail on some of the changes.