Mon, 16 Feb 2026

Mon, 16 Feb 2026 'Significant' personal tax allowance rise on cards

The treasury minister prepares to deliver a budget with a "significant rise" in personal allowances.

* A significant rise in personal tax allowance will be revealed in Tynwald on Tuesday, as part of the Isle of Man's 2026-27 budget.
* The current personal allowance is £14,750 and the new figure is expected to be higher than last year's £250 increase.
* The planned increase aims to bring the allowance back in line with inflation and reduce "fiscal drag", where wage inflation reduces the real value of tax-free allowances.
* The change will benefit nearly everybody, particularly low-earners who may be taken out of paying tax altogether.
* The new budget does not include capital gains tax or wealth taxes, which are not part of the Isle of Man's tax tradition.
* Those at the highest end of the earning spectrum will not benefit from the increase in personal tax allowance due to the tax cap system.
* Chris Thomas, the new Treasury minister, has ruled out bringing in new taxes to compensate for the planned rise in personal allowances.
* The budget is designed to "reset the economy" and put more money in people's pockets, with amendments aimed at benefiting businesses and workers.
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