Here is a quick summary of the main points of today's budget from Thompsons Accountants
Isle of Man Budget 2012 'Striking a Fair Balance'
Treasury Minister Eddie Teare delivered his first Budget today, here are the
taxation highlights.
Personal Tax
The income tax standard rate for individuals remains at 10%.
The income tax higher rate for individuals remains at 20%.
Income tax personal allowances unchanged at £9,300 for single persons and £18,600 for jointly assessed couples.
Additional Personal Allowance for over 65's remains at £2,020.
The threshold at which the higher rate for individuals becomes payable remains at £10,500.
Personal Allowance Credit reduced by £200 per person.
Restriction of tax relief on mortgage interest, loan interest etc to lower tax rate of 10%.
Removal of tax relief on maintenance payments and maintenance received is no longer classed as taxable income.
Increase in National Insurance Employees Primary threshold by £3 per week and Upper Earnings Limit by £20 per week
The cap of £115,000 on an individual’s income tax liability will be increased to £120,000 for the tax year commencing on 6 April 2012. The tax cap of £120,000 will be doubled for jointly assessed couples.
Company Tax
The abolition of the attribution regime for individuals as announced in last years budget will take effect from 6 April 2012.
The zero ten tax system continues.
The Assessor of Income Tax will be expected to challenge artificial arrangements intended to escape tax and seek the tax which should have been paid.
Employers Tax
A National Insurance Rebate scheme is introduced to defray the employment costs of firms taking on additional employees.
Following consultation in 2010, the compulsory use of Online Tax Services for employers is introduced, in a phased approach, from 6 April 2012.
