Saturday, October 21, 2017
You are here: Isle of Man > Isle of Man News
Isle of Man News
General News
Boost for Economy and Low Income Groups 21 February 2006

    A forward-looking Budget of investment in the Island’s economy combined with more help for people on low incomes was announced by Treasury Minister Allan Bell MHK today (Tuesday, February 21, 2006).

    Mr Bell described his fifth and final Budget of the current Government as ‘a springboard to the future.’

    Key features include:

    • Delivery of zero rate income tax as the norm for the vast majority of companies, along with a £100,000 per year cap on personal tax liability to encourage entrepreneurial investment in the economy.
    • A £2.5 million package of additional support for low income groups, including a 40% increase in the Personal Allowance tax credit.
    • An increase of £39.3 million or 8.2% in net Departmental revenue spending on public services to a new total of £522 million, including £16.9 million more for Health and Social Security and £4.6 million more for Education.

    Mr Bell told Tynwald:

    ‘What I believe we are doing today is putting in place further measures that will create new opportunities in our never ending quest for economic progress and will provide a springboard to the future – a future in which all our citizens will benefit from the creation of additional prosperity for the Island’.
    Personal Allowances are increasing by 2% to £8,670 for a single person and £17,340 for married couples.

    The Minister declared:

    ‘This year, the changes I am proposing will benefit those on low incomes by removing a number of non-taxable benefits from the Personal Allowance Credit computation. Increased personal allowances and increases in the scope and quantum of the Personal Allowance Credit will provide further assistance to the less well off and take a significant number out of the tax net and into the scope of the Personal Allowance Credit. We estimate this will provide almost £3 million of additional income to those who need it most.’

    Other key features of the 2006 Manx Budget:

    • Additional funding for DHSS and Health Services.
    • Confirmation that mortgage tax relief will be retained for primary homes, but not for second or multiple properties.
    • £100 million capital spending programme.
    • Introduction of zero rate of income tax on banks’ surplus capital.
    • Income Tax threshold at which higher rate for individuals becomes payable increased by around 2% to £10,500.
    • A 40% increase in the Overseas Aid budget to £1.4 million
    • Provision for an additional 20 Government employees (compared with 212 extra in 2005/06).
    • The introduction of a corporate charge of £250 for each company not already paying exempt company fees or non-resident company duty.
    • For individuals, the standard income tax rate will stay at 10%, with the higher rate remaining at 18%.

    Further information from :

    Alistair Ramsay, Isle of Man Government Press and Public Relations Officer,
    Telephone: (01624) 686243 Fax: (01624) 685710

    Mark Shimmin, Chief Financial Officer, The Treasury, Isle of Man.
    Telephone: (01624) 685586 Fax: (01624) 685662

    Malcolm Couch, Assessor of Income Tax, The Treasury, Isle of Man.
    Telephone: (01624) 685350 Fax: (01624) 685351

    21st February 2006

    More stories >>>  

    Related News Articles
    Government acts to protect local economy and jobs 19 April 2013
    GOVERNMENT is backing the financial restructuring of a prominent Island business group to help protect the local economy, Chief Minister Allan Bell MHK announced today (Friday April 19, 2013). [More]
    DED outlines plans to develop and diversify the economy 28 February 2013
    'Agenda for Change – Our Economy’ document publishedThe Department of Economic Development has outlined Government’s strategy to further develop and diversify the Isle of Man’s economy over the coming year. [More]
    DCCL continues efforts to meet budget targets 19 February 2013
    SummaryA total of 12 managerial and admin posts have been removed saving £350,000 a year. [More]
    Budget lays ‘Firm Foundations’ for the future 19 February 2013
    GOVERNMENT is on course to rebalance its finances while working to develop the Island’s economy and protect the vulnerable. [More]
    DED focuses on job creation and income generation in 2013 19 February 2013
    SummaryReal terms economic growth of 3% in 2012/13 and 4% forecast for 2013/14. [More]

    Other Guides by Maxima Systems Ltd: Disney World