The Isle of Man Treasury has presented the 2026 Budget and five-year financial plan, setting a 2026/27 revenue spending budget of GBP 1.47 billion and outlining a package of tax, National Insurance and spending measures. Key household changes include a GBP 2,250 increase in the personal tax allowance from April 2026 and a 4.8% uplift in Class 1 National Insurance (NI) thresholds and limits, while keeping NI rates unchanged. The personal allowance change raises the point at which income tax starts to GBP 17,000 for individuals and GBP 34,000 for jointly assessed couples, and is expected to reduce income tax receipts by up to GBP 24 million, with a net additional reduction of GBP 10 million after offsets. The higher rate of income tax remains frozen at 21% but becomes payable at income over GBP 23,500, and the TT Homestay tax allowance increases to GBP 2,500. Class 1 NI thresholds move to GBP 176 per week (from GBP 168), the Lower Earnings Limit to GBP 129 (from GBP 125) and the Upper Earnings Limit to GBP 1,082 (from GBP 1,032), with Class 4 thresholds rising accordingly and Class 2 and Class 3 voluntary contribution rates increasing in line with established practice. On spending, the plan includes an additional GBP 83 million investment in public services for 2026/27, including GBP 45 million more for healthcare (annual budget GBP 412 million, planned to grow to GBP 483 million over the strategy period), plus funding uplifts for childcare and skills, security, and infrastructure and transport. Capital expenditure is estimated at around GBP 85 million, including borrowing by Manx Utilities of over GBP 35 million, alongside allocations for airport works, housing funds, emergency services assets, digital projects and project development. Looking ahead, the Treasury expects the first receipts from the 15% Domestic Top-up Tax on in-scope large multinational enterprises in March 2027, with GBP 31 million of additional revenue budgeted for 2026/27 and GBP 35 million annually thereafter. The temporary increase in the NI-funded NHS allocation is stated to run only until 2029/30, and the next Government Actuary review of the Manx National Insurance Fund is due to start in April 2027 with publication planned for Spring 2028; the speech also flagged planned reporting to Tynwald on a commissioned review of construction cost impacts before the end of the current parliamentary year.
The Treasury (Isle of Man) 2026-02-17
Isle of Man Treasury sets 2026 Budget with GBP 1.47 billion revenue spending and a GBP 2,250 rise in the personal tax allowance
The Isle of Man Treasury has unveiled the 2026 Budget and a five-year financial plan, setting a revenue spending budget of GBP 1.47 billion for 2026/27. Key measures include a GBP 2,250 increase in personal tax allowance, a 4.8% uplift in Class 1 National Insurance thresholds, and an additional GBP 83 million investment in public services. The Treasury anticipates GBP 31 million in revenue from the 15% Domestic Top-up Tax on large multinational enterprises by March 2027.