Isle of Man: No major tax changes in 2023 budget
Main immediate tax change announced was the tapering of individual allowances
Main immediate tax change announced was the tapering of individual allowances
The Treasury Minister presented the budget for 2023 on 21 February 2023.
No major changes with respect to the income tax and national insurance regimes were announced.
The main immediate tax change announced was the tapering of individual (personal) allowances by £1 for every £2 of total income over £100,000, for individuals, and £200,000, for jointly assessed couples, which will become effective 6 April 2023. The effect of this is that individuals with annual income over £129,000 and jointly assessed couples with annual income in excess of £258,000 will see their individual (personal) allowance reduced to nil.
Longer-term, the Treasury confirmed its intention to conclude initial work on a new tax strategy before the end of 2023, which will be designed to establish the main themes that will guide tax policy formation for the remainder of the current administration. Secondly, it was announced that the introduction of local rules consistent with the global minimum tax rate initiative (Pillar Two) is being considered.
Read a February 2023 report prepared by the KPMG member firm on the Isle of Man
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