Private Client jurisdictional guide—Isle of Man
Produced in partnership with Annemarie Hughes (Director) and Greg Jones (Consultant) of DQ Advocates
Private Client jurisdictional guide—Isle of Man

The following Private Client guidance note Produced in partnership with Annemarie Hughes (Director) and Greg Jones (Consultant) of DQ Advocates provides comprehensive and up to date legal information covering:

  • Private Client jurisdictional guide—Isle of Man
  • Taxation regime
  • Trusts and foundations
  • Same sex marriages and civil unions
  • Succession
  • Capacity and powers of attorney
  • Immigration issues

Taxation regime

What factors determine tax liability in your jurisdiction (eg domicile, residence or citizenship)?

Only the concept of residence is relevant for taxation on the Isle of Man.

Generally speaking, an individual is treated as resident in the Island for tax purposes if they:

  1. are resident for more than six months in any tax year (ending 5 April)

  2. spend more than 90 days per tax year on average over a period of four or more years (in which case residence attaches from the fifth year), or

  3. arrive on the Island with a view to becoming resident

What taxes apply to an individual’s income?

For the tax year 2020–21, individuals are entitled to a tax-free personal allowance of £14,250. For any income over and above this amount, income tax is charged at the standard rate of 10% on the first £6,500 of additional income and at the higher rate of 20% for any further income. It is possible for married couples to be jointly assessed, in which case the personal allowances are doubled. In 2006, the Isle of Man government introduced a statutory tax cap. The effect of the cap is to fix the amount of income tax paid by an individual in a tax year. An individual must elect for the tax cap to be applied and, if the election