Isle of Man Tax — The Basics
The Isle of Man has one of the simplest and most favourable tax systems in the British Isles. No VAT, no capital gains tax, no inheritance tax, and low income tax rates.
Income Tax Rates (2025/26)
| Band | Rate |
|---|---|
| First £6,500 | 10% |
| Above £6,500 | 20% |
| Tax cap (individual) | £200,000 max |
| Tax cap (couple, joint) | £400,000 max |
What You DON'T Pay
- No VAT — Goods and services are not subject to VAT
- No Capital Gains Tax — Sell shares, property, crypto — no CGT
- No Inheritance Tax — Your estate passes without IHT
- No Stamp Duty on shares — Only on property transactions
Filing Your Tax Return
Tax returns must be filed by 6 October following the end of the tax year (5 April). You can file online via the IoM Online Tax Services portal.
National Insurance
IoM NI rates broadly mirror the UK system but are administered separately by the IoM Treasury. Class 1 (employed) and Class 2/4 (self-employed) contributions apply.
ITIP (Income Tax Instalment Payments) for Employers
If you employ staff, you must operate ITIP — the IoM's PAYE equivalent. Register as an employer with the Assessor of Income Tax.
Frequently Asked Questions
Do I need to file a tax return on the Isle of Man?
Most employed people don't need to file if their only income is from employment (ITIP handles it). Self-employed people, directors, landlords and those with multiple income sources must file. You'll receive a notice if you need to file.
Is the Isle of Man a tax haven?
The IoM prefers "low-tax jurisdiction." It has a 0% standard corporate tax rate (with 10% for banking and 20% for property income), no VAT, no CGT and no IHT. But it's fully OECD-compliant, on no blacklists, and has extensive tax information exchange agreements.
How do I get a tax number?
When you start working or register as self-employed, the Income Tax Division will issue you a tax reference number. Contact them on 685400 or register via the online portal.