Isle of Man Government budget: How might recent changes affect your wealth

In their annual budget update on Tuesday 18 February, the Isle of Man Government announced a 1% reduction in the higher rate of income tax, lowering it from 22% to 21%.

While this adjustment might seem modest at first glance, it could lead to meaningful savings for Isle of Man residents with significant wealth. For those considering a move to the Isle of Man, these changes also provide a greater financial incentive as the Isle of Man is an attractive jurisdiction for those looking to optimise their wealth in a stable environment.

The below chart compares the Isle of Man personal allowance, higher rate tax and tax cap to those in England and Scotland.

These changes could give you a great opportunity to review your wealth strategy and evaluate how they might affect your broader financial goals – whether you already live in the Isle of Man or are considering a move there.

For those with significant wealth, it’s especially important to have the right advice to ensure your finances are in order. Our wealth planners are experts in helping clients, whether they are already an Isle of Man resident, or moving to the Isle of Man. Their tailored advice can align with both your immediate needs and long-term objectives. We will help you make informed decisions about where to hold your wealth and how to structure your accounts and investments, to meet your personal goals and aspirations.

Please contact us for more information.

To learn more about the Isle of Man Government’s budgetary changes, click here.

*Isle of Man Tax Cap: Subject to election, eligibility, and other terms and conditions.

Nothing in this article constitutes legal or tax advice. Legislation and taxation often change and may not apply to your individual circumstances. Nedbank Private Wealth does not give tax or legal advice, and clients should consult their independent advisers for specific advice, before making any investment or financial decision.