2008-09 Isle of Man Budget at a Glance
-
A £6 million increase, to a new total of £10 million, for the Marketing Initiatives Fund to boost Government’s promotion of the Island’s economy, plus £8 million more over two years for the E-Commerce Fund.
- £8 million to establish a new Town and Village Centre Regeneration Fund, initially focussed on improving the infrastructure and environment of the centre of Douglas as the Island’s capital.
- £28.2 million or 5.2% increase in net Departmental revenue spending on public services to a new total of £566.5 million.
- 0.1% increase in Government staff numbers the lowest since 1995/96.
- New £3 million Energy Initiatives Fund to help Government cut its fuel bills and carbon emissions.
- Proposals to be published for simpler car and fuel benefits in kind system to reflect environmental impact.
- Overseas Aid Budget up 22% to £2.2 million, (compared to £400,000 in 2002).
- £4.3 million more for Education, including £2 million to meet rising fees for Island students at UK universities.
- Personal income tax standard rate stays at 10%, with the higher rate remaining at 18%.
- Tax cap on total income tax payable per person remains at £100,000 or £200,000 per married couple.
- An additional income tax allowance of £2,000 for all over-65s, taking another 1,650 pensioners out of the tax net. In 2008/09 half the Island’s retired population will pay no income tax.
- Personal Allowance Credit for those on low incomes increased 19% to £500 and payable as a flat rate to all recipients - 4,500 people previously on partial credits will now get the full amount.
- Extra help for pensioners on income support which could see some couples £1,000 a year better off.
- A gross spending increase of 7.3% for the Department of Health and Social Security – the highest for five years. Provision is made for the introduction of free nursing care on a phased basis, for a new carers bereavement payment, and to build on waiting list initiatives.
- Capital programme at £169.8 million.
- £32.4 million surplus expected in 2008-09 - £43.3 million surplus in the current year.
- £87 million is to be transferred to various Reserves over the current and next year.
- Simplification of the income tax system continuing – life insurance relief and training relief to be abolished.
- £250,000 more for DTI vocational training.
- Income tax personal allowances increased by around 4% in line with inflation to £9,200 for single persons and £18,400 for married couples:
| Single Person’s Allowance | £9,200 |
| Married Couple’s Allowance | £18,400 |
| Single Parent Allowance | £5,500 (including Single Person’s Allowance) |
| Registered Blind Person Additional Allowance and Disabled Person Allowance | £2,850 |
-
Thresholds at which higher rate becomes payable remain at -
-
Single Person remains at £10,500 of taxable income;
- Married Couple remains at £21,000 of taxable income, fully transferable between husband and wife;
- Single persons may have incomes of £19,700 before paying tax at the higher rate of 18%, whilst for married couples this figure is £39,400;
Further information from :
Mark Shimmin,
Chief Financial Officer,
The Treasury,
Isle of Man
Telephone: (01624) 685586
Fax: (01624) 685662
