IOM Budget 2020/21 – Key Features at a glance

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  • IOM Budget 2020/21 – Key Features at a glance

Income tax rates and allowances

A slight increase in personal allowance by £250 from £14,000 to £14,250 while the 10% tax bracket remains at £6,500.

National Insurance: 10% rise in earnings threshold, 5% rise in UEL affecting earnings >£42k p.a.

Tax Cap

From April 2020 a 10 year tax cap election will be available in addition to 5 year tax cap

VAT

5 year FERSA review concluded.  Conclusion of review allows £44m to be released into general funds.

Benefits

Key rises in the following benefits:

  • Pensioners

Basic state pension (3.9%)
Additional pension – ‘SERPS’ (1.7%)
Manx State Pension up to the full rate (3.9%)
Income Support Pensioner Premium (5.2%) to ensure pensioners on low
incomes receive the full benefit of the increase in the basic state pension
Manx State Pension Transitional Amount (1.7%)

  • Family/Other

Child Benefit (2.0%) building on last year’s increase of 5%
Employed Person’s Allowance – basic allowances (1.6%, but 5.7% for
disabled workers)

  • Disability

Attendance Allowance (2.0%)
Income Support Disability and Disabled Child Premiums (5.2%)
Nursing Care Contribution (3.6%)
Disability Living Allowance (2.0%)

  •  The allowance for the first or only child in a family in receipt of income support, employed person’s allowance and income based job seeker’s allowance is to be increased by £7.45 per week in addition to the 2% increase in Child Benefit.
  • An additional £2.2 million for Health and Social Care services, £5 million for Infrastructure, £2.3 million for Department for Enterprise and £700,000 for Education, Sport & Culture relating primarily to Apprenticeships.
  • A five-year capital investment programme of £541 million, including Douglas Promenade Walkway, the construction of the Isle of Man Ferry Terminal in
    Liverpool, major ground-works at the airport and sports pitch works to enable the development of Castle Rushen High School.
  • Funds of £10 million set aside to fund initiatives designed to mitigate the impact of climate change on our Island while the longer-term funding strategy is developed.
  • An increase of £1.2 million for the Housing Deficiency Budget and an additional £500,000 for the dredging of Peel Marina.

Cycle to work

Annual BIK exemption increased to £1,200

General

  • 2019/20 surplus of £11.1m, making it £9m higher than forecast, with a £12m surplus predicted for 2020/21
  • Unemployment remains at or below 1% (Since May 2017)
  • National insurance holiday concession for those returning to Island to be made legislation
  • Road duties unchanged and Air passenger duties frozen
  • Continuation of the National Insurance Holiday Scheme for employees who move to the Island for work and Manx students who return to the Island for employment after completing their UK university courses.
  • £326,000 for the Office of Cyber Security & Information Assurance to focus on developing our defences against new and emerging technology and cyber threats.
  • £590,000 to fund a new and improved Air Ambulance service and £565,000 to fund an increase in the Endoscopy service available to patients on the Island.
  • More than £1 million of capital funding towards new communications equipment for the emergency services.
  • Healthcare Transformation Fund to be topped up by £5m to support Sir Jonathan Michael’s Health Care recommendations

#WeAreCrowe #BudgetIOM2020 #IOMBudget2020

https://www.gov.im/treasury