Isle of Man

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Return to homepage  |  Last updated: 30 September, 2020

Most restrictions relating to COVID-19 were removed by mid-June following local elimination of the virus, although border restrictions remain.  An ‘air bridge’ with Guernsey has allowed unrestricted travel between the two islands over the summer; residents travelling off-island are required to self-isolate upon their return; non-residents from other locations must obtain an Exemption Certificate before travelling to the Isle of Man, and certificates can only be obtained in limited circumstances.

Many of the measures introduced to support businesses and individuals through the lockdown period have been withdrawn or are winding down, with the local economy now open again. The Government’s general stated principle is that it will support businesses where it’s decisions relating to the control of COVID-19 have severely restricted their market sector or operating ability in the short to medium term.  Tourist Accommodation businesses continue to be affected by border restrictions, and the Government is currently considering how best to support that sector through the winter months.

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

• Eligibility for the Salary Support Scheme – which has supported affected businesses’ salary costs up to £280 per week per full-time employee – is now limited to businesses in the travel and tourism sector. The scheme is currently scheduled to end on 11 October 2020.
• The Manx Earnings Replacement Allowance – which has supported those laid off, made redundant or losing self-employed work – is not payable for periods after 20 September 2020.
• A scheme has been introduced to ensure that those working in social care settings are able to access sick pay when required to self-isolate.
• Work permit requirements were temporarily relaxed. This included the automatic extension by six months of existing permits for those in employment between 28 February and 15 July 2020.

• The Strategic Investment Fund can provide loans, investment or fixed asset purchase to support strategically important businesses.
• Government-backed loans are available through local banks under the Disruption Loan Guarantee Agreement and the Coronavirus Business Working Capital Loan Agreement.
• The Strategic Capacity Scheme – which supports tourist accommodation businesses – is currently scheduled to end on 30 September 2020. Government is considering how best to provide support to the sector through the winter.
• The Coronavirus Business Support Scheme – a one-off grant of up to £3,000 for eligible businesses and self-employed individuals – can still be claimed.
• The Coronavirus Business Adaptation scheme – offering 50% funding for adaptation of eligible businesses – can still be claimed.
• Government has accelerated various existing capital works.

The Government has formed an Economic Recovery Group and has parliamentary approval for an Economic Recovery Fund of up to £100m to support a full recovery and develop the Island’s economy for the future.

The current focus is on three pillars:

• ‘Our People’: developing the workforce
• ‘Our Island’: regeneration, and acceleration of climate change-related measures
• ‘Our Economy’: stimulating spending in the local economy

Main sources of information

• Isle of Man Government – Coronavirus

Tax: David Parsons – davidparsons@kpmg.co.im
Restructuring: Russell Kelly – russellkelly@kpmg.co.im / Aidan Tucker – aidantucker@kpmg.co.im