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:
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:
are resident for more than six months in any tax year (ending 5 April)
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
arrive on the Island with a view to becoming resident
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
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