Tax cap election

It may be possible to elect for your tax liability to be capped to a fixed amount and which can therefore provide certainty of tax to be paid for five years (or an optional longer period of 10 years) irrespective of your taxable income.  For elections made prior to 6 April 2021 the tax cap is £200,000 per annum (or £400,000 for those jointly assessed). If an election is not made, all income is taxed at the standard rates up to a maximum of 20% for the tax year 2020/21.

Please see the Isle of Man Government’s Practice Note 184-14 for more detail in this regard and our tax card for a summary of the standard tax rates that are currently in force.