Blog    The Isle of Man has a tax cap of £120,000

The Isle of Man has a tax cap of £120,000

Isle of Man

The Isle of Man, also known simply as Mann, is a self-governing crown dependency between England and Northern Ireland in the Irish Sea. Under British law, the Isle of Man is not part of the United Kingdom; however, the UK oversees its external and defence affairs.

Today, Mann’s critical sectors of the economy include offshore banking, manufacturing, and tourism. Agriculture and fishing, once the mainstays of the economy, now make declining contributions to the island’s economy. The government promotes island film-making locations by contributing to the production costs. Since 1995, over 80 films have been produced on the island.

The Isle of Man is also said to be home to fairies, known locally as ‘the little folk or themselves’. There is a famous Fairy Bridge, and it is said to be bad luck if one fails to wish the fairies good morning or afternoon when passing over it. Leaving a coin on the bridge was a tradition to ensure good luck.

The Isle of Man is a low-tax economy with no capital gains tax, wealth tax, stamp duty, or inheritance tax and a top rate of income tax of 20%. A tax cap is in force, so the maximum amount of tax payable by an individual is £120,000 or £240,000 for couples. Personal income is assessed and taxed on a total worldwide income basis rather than a remittance basis. The corporation tax rate is 0% for almost all types of income. The only exceptions are the 10% tax on profits of banks and rental income from land and buildings situated on the Isle of Man.