Additional Income Tax to be ‘ringfenced’ for healthcare 

Treasury minister's plans for new tax strategy

Additional money generated from raising Income Tax will be ‘ringfenced’ for healthcare services on the Isle of Man.

It’s one of a number of measures outlined in the 2024-2025 Budget which was unveiled in Tynwald today (20 February).

The higher rate of personal Income Tax will rise from 20 percent to 22 percent in April.

You can find out more HERE.

It’s forecast that the increase will generate £20 million for government coffers.

However it’s unclear how long this hike will be in place for.

That’s because the treasury minister will present a new Tax Strategy to Tynwald at the March sitting of the court.

This will propose the introduction of a standalone annual NHS levy which would aim to replace this tax increase.

This, Treasury says, would lead to a ‘fairer way that all those in our community could help fund the healthcare system they rely on’.  

Alex Allinson added: “Although our Income Tax receipts have been strong, and are currently forecast to be in excess of £320 million, there still remains a gap in healthcare funding which must be addressed now and for the future.

“It is my ambition to introduce the levy from the 2025-26 Income Tax year and therefore the necessary legislation will need to be brought forward prior to this.”

Tynwald will vote on the Budget later today.

Find out more about this year's Budget and how it will affect you by clicking HERE.