Budget sees largest ever personal allowance rise
Summary
The Isle of Man has announced its budget for 2026-27, featuring the largest ever increase in personal tax allowance by £2,250. This change will help remove 3,600 people from paying taxes entirely and save middle-income earners around £500 annually. The budget also addresses changes in pensions, benefits, and public spending while planning to utilize reserves.Key Facts
- The personal tax allowance in the Isle of Man will increase by £2,250, costing £25 million overall.
- The change will remove 3,600 people from the tax net and save median earners about £500 annually.
- The allowance rises to £17,000 for individuals and £34,000 for couples.
- Treasury Minister Chris Thomas announced the change as part of an "economic reset."
- The Manx state pension will increase by 4.8%, aligning with the triple-lock principle.
- The government plans to use £126 million from reserves as part of a long-term financial strategy.
- A 2% cap on pay awards in the public sector is expected to save £5.6 million.
- Health and social care receive a significant funding increase of £45 million.
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