Budgets

The 2006 Budget confirms the introduction of the standard zero rate of tax for companies, and introduces a tax cap of £100,000 per year per individual.

• Standard and higher rates of tax remain at 10% and 18% (subject to the cap)

• Tax free personal allowances increased by 2% to £8,670 for single individuals and £17,340 for married couples

• Thresholds at which higher rate tax becomes payable increased to £10,500 for single individuals and £21,000 for married couples

• Mortgage interest on first homes and all loan interest payable to Isle of Man lenders to remain fully tax deductible

• Standard zero rate of tax for companies introduced from 6 April 2006

• No new applications for Exempt and International company status accepted from 6 April 2006, and existing Exempt and International companies to continue to 5 April 2007 only