Isle of Man Budget 2024

[Derek Flint]

Any strength in the 2p in the pound income tax increase?

[John Wright]

1 hour ago, Derek Flint said:

Any strength in the 2p in the pound income tax increase?

20p is a shibboleth.

However I think we may follow/play catch up with UK on NI and knock tax free allowances for high earners.

My bet is a one off above inflation increase in non contributory benefits to cover utility increases.

Other than that, clever book keeping, lots of capital schemes or things disguised as capital schemes.

[mad_manx]

5 hours ago, John Wright said:

20p is a shibboleth.

However I think we may follow/play catch up with UK on NI and knock tax free allowances for high earners.

My bet is a one off above inflation increase in non contributory benefits to cover utility increases.

Other than that, clever book keeping, lots of capital schemes or things disguised as capital schemes.

I've heard of reduction in the tax free allowance for high earners.. Right now you can do a joint return  and earn upto £200k and keep the personal allowance .  Going to be reduced  to £100k  as per rumours . 

Will probably affect recruitment for doctors etc as this used to be an incentive for those moving to the island. 

Edited February 17 by mad_manx

[Two-lane]

9 hours ago, code99 said:

That being said, the IOM has no realistic choice but to follow the UK’s lead, i.e. a “legal duty” to target net-zero goals

To what extent is that a requirement? Simply because the IoM is considered an independent country? That is not sensible. Does Budleigh Salterton also have a requirement to be net-zero?

[code99]

8 minutes ago, Two-lane said:

To what extent is that a requirement? Simply because the IoM is considered an independent country? That is not sensible. Does Budleigh Salterton also have a requirement to be net-zero?

https://www.gov.im/news/2023/mar/27/climate-change-paris-agreement-extended-to-isle-of-man/

[Banker]

1 hour ago, mad_manx said:

I've heard of reduction in the tax free allowance for high earners.. Right now you can do a joint return  and earn upto £200k and keep the personal allowance .  Going to be reduced  to £100k  as per rumours . 

Will probably affect recruitment for doctors etc as this used to be an incentive for those moving to the island. 

The higher earners will be taxed higher, I’ve been saying this for a few months and maybe some new taxes to widen the net eg around directors loans, dividends etc,. Doctors already benefit from much lower taxes particularly the higher earners who would be paying 45% in UK .

[code99]

On 2/16/2024 at 10:45 PM, Utah 01 said:

1. The negligible side of negligible.

2. No.

3. More than we can either afford, or if the real cost were put to the GMP, want to afford.

4.  Not the bastards who want to impose their irrational eco-lunacy on the rest of us.

Next question?

I am not sure who the bastards you are referring to are, but the Isle of Man and “the UK’s other Crown Dependencies” signed up to the “legally binding” Paris Agreement back in 2021 by enacting the Climate Change Act 2021 “which has been approved by Tynwald and received Royal Ascent”. This includes “plans to reach net zero by 2050”.

We will probably never know whether the IOMG was cajoled into net zero plans by the UK Government at COP26 in Glasgow or did this of its own volition. Regardless, the Island is now required to “contribute to the UK’s commitment to reduce its emissions by at least 68% on 1990 levels, by 2030”.  The clock is ticking, and 2030 is not that far away. Ostensibly, the UK has already reduced its “territorial greenhouse gas emissions” from 1990 to 2020 by 49.7%, so perhaps the desired 68% is not such a stretch after all.

In theory, the IOM 2024-25 Budget should include some specific climate change-related measures to resemble ‘emission reductions’, but the truth is that at this stage the Island can ill afford to spend large chunks of money on anything. This means that we are at the mercy of the UK Government and the IOMG will have to work very closely with Westminster if it wants to water down some of our “legally binding” commitments.

Edited February 18 by code99

[Non-Believer]

44 minutes ago, code99 said:

I am not sure who the bastards you are referring to are, but the Isle of Man and “the UK’s other Crown Dependencies” signed up to the “legally binding” Paris Agreement back in 2021 by enacting the Climate Change Act 2021 “which has been approved by Tynwald and received Royal Ascent”. This includes “plans to reach net zero by 2050”.

We will probably never know whether the IOMG was cajoled into net zero plans by the UK Government at COP26 in Glasgow or did this of its own volition. Regardless, the Island is now required to “contribute to the UK’s commitment to reduce its emissions by at least 68% on 1990 levels, by 2030”.  The clock is ticking, and 2030 is not that far away. Ostensibly, the UK has already reduced its “territorial greenhouse gas emissions” from 1990 to 2020 by 49.7%, so perhaps the desired 68% is not such a stretch after all.

In theory, the IOM 2024-25 Budget should include some specific climate change-related measures to resemble ‘emission reductions’, but the truth is that at this stage the Island can ill afford to spend large chunks of money on anything. This means that we are at the mercy of the UK Government and the IOMG will have to work very closely with Westminster if it wants to water down some of our “legally binding” commitments.

Sunak has already back-pedalled on UK's commitment, hopefully recognising that the financial implications are unviable. If he can do it then we can also set ourselves a more realistic target, particularly given our micro percentage contribution to the problem.

[Blade Runner]

20 hours ago, mad_manx said:

I've heard of reduction in the tax free allowance for high earners.. Right now you can do a joint return  and earn upto £200k and keep the personal allowance .  Going to be reduced  to £100k  as per rumours . 

Will probably affect recruitment for doctors etc as this used to be an incentive for those moving to the island. 

Good luck with that

They tried it last year and all it did was make friends of mine join their partners tax return together to get the £200K limit. (Generally people who earn over £100K have partners that don't work) 

Flame away ladies, but that is a statement of truth-

• If you get together with a high earner (Even if you are one too) you stop work to have children, that is not a sexist statement, it is fact how families happen.
• Women are better designed and are much more mentally prepared people to bring up children properly.
• If having to work for financial reasons, while they try to bring up children, that is not conducive to a good upbringing for their children. - Fact
• See the crime rates in big city's in the UK with lots of single mothers.
• So unless you are going to totally farm it out (Good Upbringing)  to somewhere like King Williams/ Buchan. It is better for ladies to bring up their own children and teach them right and wrong.

Anyway, back to the tax topic.

If this year IOMGOV get rid of that tax allowance,  my mates are going to offshore part of their incomes, legally.

It is quite easy if you have the funds to do it.

The island really needs to cut its cloth/ outgoings before it squeezes the pips out of its wealthier residents.

[code99]

34 minutes ago, Blade Runner said:

The island really needs to cut its cloth/ outgoings ....

No worries. "Manx economy in 'better position' than UK, says Treasury". I trust doctors.

https://www.manxradio.com/news/isle-of-man-news/manx-economy-in-better-position-than-uk-says-treasury/

[Gladys]

43 minutes ago, Blade Runner said:

Good luck with that

They tried it last year and all it did was make friends of mine join their partners tax return together to get the £200K limit. (Generally people who earn over £100K have partners that don't work) 

Flame away ladies, but that is a statement of truth-

• If you get together with a high earner (Even if you are one too) you stop work to have children, that is not a sexist statement, it is fact how families happen.
• Women are better designed and are much more mentally prepared people to bring up children properly.
• If having to work for financial reasons, while they try to bring up children, that is not conducive to a good upbringing for their children. - Fact
• See the crime rates in big city's in the UK with lots of single mothers.
• So unless you are going to totally farm it out (Good Upbringing)  to somewhere like King Williams/ Buchan. It is better for ladies to bring up their own children and teach them right and wrong.

Anyway, back to the tax topic.

If this year IOMGOV get rid of that tax allowance,  my mates are going to offshore part of their incomes, legally.

It is quite easy if you have the funds to do it.

The island really needs to cut its cloth/ outgoings before it squeezes the pips out of its wealthier residents.

What utter bullshit.  

[code99]

1 hour ago, Non-Believer said:

Sunak has already back-pedalled on UK's commitment

Ditto the UK Labour Party. When comes to climate change policies, the outcome of the UK GE is crucial. Nevertheless, IOMG is "legally" required to follow the UK's commitment to Paris Agreement/ COP26.

[Yibble]

12 minutes ago, Gladys said:

What utter bullshit.  

I don't particularly subscribe to the gender stereotyping in the post, but he's right about the behavioural effects of tax policy. 

Making it more expensive to put higher value economic activity in a jurisdiction is silly. Companies have a choice where they put their corporate functions. HNWIs have a reasonable degree of control where their assets will sit. Despite the apparent incompetence of our political class, this is something that they (or those who advise them) have always appeared to understand. If they send out a signal that they no longer do, they can expect to see their coffers dwindle even more quickly.

[Blade Runner]

40 minutes ago, Gladys said:

What utter bullshit.  

Okay honey

Put the dinner on and your partner will sort the complicated stuff

 

P.S. Do you live alone?

I would bet so and I am not surprised.

Edited February 18 by Blade Runner

[Blade Runner]

50 minutes ago, code99 said:

No worries. "Manx economy in 'better position' than UK, says Treasury". I trust doctors.

https://www.manxradio.com/news/isle-of-man-news/manx-economy-in-better-position-than-uk-says-treasury/

And the last time someone said that, T Brown was it? you got your VAT lifeline cut in half.

I would not really like to be on the rock with Labour coming into power on the mainland,even If I think they are idiots.

"ABC" - Anything But Conservative (Replaced anything but chardonnay)  - is the word round the Dales, not because we want Labour but because the Conservative party have been so pitiful.