Budget 2024 at a glance

Key rises in the following benefits:

Pensioners

  • Under the ‘triple lock’ uprating – the basic state retirement pension and Manx state pension increase by 8.5%
  • Those in receipt of the full Manx state pension will receive an extra £18.83 each week, and £979.16 more over a year (based on 52 weeks)
  • Additional pension (‘SERPS’) and Manx state pension protected amounts (6.7%)
  • Around 20,000 pensioners will see their state pensions increased by between 6.7% and 8.5%

Family/Other

  • Maternity Allowance, Adoption Allowance and Paternity Allowance – (15.0%) maximum rates will rise from £210 to £241.50 a week. Maternity allowance standard rate will rise from £182.90 to £210.35
  • Maternity Payment – (7.1%) will be a lump-sum of £750
  • Child Benefit – for first or only child in a family (5.7%) for second and subsequent children (60.3%). Family with 2 children – up to an extra £12.05 per week/£626.60 per year; Family with 3 children – up to an extra £22.60 per week/£1,175.20 per year. Around 3,000 families who have more than one dependent child will see their Child Benefit significantly increased
  • Bereavement Support Payment (6.7%)
  • Employed Person’s Allowance, Income Support and income-based Jobseeker’s Allowance – basic personal allowances and allowances for children (5.7%)

Sickness and Disability

  • Incapacity Benefit (6.7%)
  • Incapacity Benefit – permitted work higher weekly earnings limit (6.7%)
  • Carer’s Allowance (6.7%)
  • Carer’s Allowance – weekly earnings limit (6.7%)
  • Attendance Allowance (5.7%)
  • Disability Living Allowance (5.7% generally, 6.7% for higher rate mobility component)
  • Nursing Care Contribution (6.7%)
  • Approximately 3,500 individuals and families of working age on low incomes will benefit from increases in Employed Person’s Allowance, Income Support and income-based Jobseeker’s Allowance

Taxation

  • The higher rate of income tax will increase from 20% to 22% with the additional income being ring-fenced for the Island’s healthcare services
  • The rate of income tax on taxable income for non-resident individuals and non-corporate entities will also increase from 20% to 22%
  • A forthcoming tax strategy proposes the creation of a standalone annual NHS levy, which would aim to replace the tax increase and also apply to those residents who do not pay income tax in the Isle of Man
  • Corporate taxpayers in receipt of income from petroleum extraction in the Isle of Man and its territorial sea will be subject to tax at a rate of 20%
  • A tax rate increase from 10% to 15% for certain banking businesses and large retailers will be introduced in respect of the 2024/25 tax year only. The 15% rate will only apply to banks and retailers whose profits would otherwise be subject to a top-up tax outside the Island under the OECD’s Pillar 2 Global Minimum Tax initiative
  • A new benefit-in-kind calculation for cars provided by an employer to an employee for private use will primarily be based on CO2 emissions and the list price of the car. The benefit-in-kind calculation in respect of fuel will also be aligned with the car’s CO2 emissions
  • The income tax personal allowance will remain at £14,500 for a resident individual and £29,000 for a jointly assessed couple
  • For higher earners, the personal allowance will continue to be reduced by £1 for every £2 that a person’s total income is above £100,000 (£200,000 for jointly assessed couples). This means if a person’s total income is £129,000 (£258,000 for jointly assessed couples) or above their personal allowance will be zero
  • The income tax lower rate for individuals will remain at 10%. The threshold at which the higher rate of income tax becomes payable will remain at £6,500 for an individual and £13,000 for a jointly assessed couple

National Insurance

  • The primary and secondary threshold for Class 1 National Insurance contributions and the lower profit limit for Class 4 National Insurance contributions will be increased by 10% to £160 per week
  • The upper earnings limit for Class 1 National Insurance contributions and the upper profits limit for Class 4 National Insurance contributions will be increased by 8.5% to £938 per week.  Class 2 and Class 3 National Insurance contribution rates will be increased by 8.5% to £6.20 and £18.95 respectively

The National Insurance Holiday scheme will continue for a further year.

Please Note: This Article was published by and remains the property of the Isle of Man Government

You may read the original article

at Isle of Man Government News 2024-02-20.