IOM Tax Solutions
The hardest thing in the world to understand is the income tax.
INCOME TAX PERSONAL ALLOWANCES 2012/2013
| Single Person | £9,300 |
|---|---|
| Married Couple (combined) | £18,600 |
| Additional Personal Allowance | £6,400 |
| Blind Person | £2,900 |
| Disabled Person | £2,900 |
| Age Allowance* | £2,020 |
INCOME TAX RATES
| Standard Rate | 10% |
|---|---|
| Higher Rate | 20% |
| Non-Resident Rate | 20% |
STANDARD RATE TAX THRESHOLDS
| Single Person | £10,500 |
|---|---|
| Married Couple (combined) | £21,000 |
| Balance taxable at | 20% |
PREVIOUS YEARS RATES AND ALLOWANCES
| 04/05 | 05/06 | 06/07 | 07/08 | 08/09 | 09/10 | 10/11 | 11/12 | |
|---|---|---|---|---|---|---|---|---|
| Standard rate | 10% | 10% | 10% | 10% | 10% | 10% | 10% | 10% |
| Single person lower rate band | 10000 | 10300 | 10500 | 10500 | 10500 | 10500 | 10500 | 10500 |
| Married couple lower rate band | 20000 | 20600 | 21000 | 21000 | 21000 | 21000 | 21000 | 21000 |
| Higher rate | 18% | 18% | 18% | 18% | 18% | 18% | 20% | 20% |
| Non-resident rate | 18% | 18% | 18% | 18% | 18% | 18% | 20% | 20% |
| Single allowance | 8225 | 8500 | 8670 | 8850 | 9200 | 9200 | 9300 | 9300 |
| Additional personal allowance** | 5630 | 5800 | 5920 | 6040 | 6300 | 6300 | 6400 | 6400 |
| Blind persons / Disabled persons | 2530 | 2610 | 2665 | 2720 | 2850 | 2850 | 2900 | 2900 |
| Age allowance | n/a | n/a | n/a | n/a | 2000 | 2000 | 2020 | 2020 |
| Non-resident allowance | n/a | n/a | 2000 | 2040 | 2120 | 2120 | 0 | 0 |
| Mortgage and Loan Interest limit*** | n/a | n/a | n/a | n/a | 15000 | 15000 | 10000 | 7500 |
| BIK**** exemption (not car benefit) | 400 | 400 | 400 | 400 | 400 | 400 | 400 | 400 |
| Nursing expense limit | 8225 | 8500 | 8670 | 8850 | 9200 | 9200 | 9300 | 9300 |
| Educational deed of covenant | 5500 | 5500 | 5500 | 5500 | 5500 | 5500 | 5500 | 5500 |
| Charitable Donations | 5500 | 5500 | 5500 | 6000 | 7000 | 7000 | 7000 | 7000 |
| Private medical insurance limit | 1800 | 1800 | 1800 | 1800 | 1800 | 1800 | 1800 | 1800 |
| Homestay (TT fortnight only) | 750 | 750 | 750 | 1500 | 1500 | 1500 | 1500 | 1500 |
IMPORTANT NOTE - From 6 April 2012, tax relief for certain general deductions is restricted to 10% for individuals. The general deductions affected are; interest paid on mortgages or loans, charitable donations or deeds of covenant, private medical insurance payments, nursing expenses and educational deeds of covenant entered into on or before 5 April 2011 and where the student is in qualifying full time education at that date. For tax years prior to 2012/13, general deductions were treated as reducing an individual’s taxable income and tax relief was therefore given at the individual’s effective rate of income tax. From 6 April 2012, 10% tax relief for the affected general deductions will be treated as reducing an individual’s total liability.