The new Treasury Minister, Chris Thomas MHK’s first Budget, and the last of the current Isle of Man Government administration, was low-key from a pensions perspective - a good thing as we don’t tend to like surprises!
Personal and occupational pension schemes are not subject to any change meaning that the tax-efficient benefits of an Isle of Man pension will remain.
While the UK Government recently announced major reforms to pension salary sacrifice arrangements, due to take effect from April 2029, there are no signs of the Isle of Man following suit on this (for the time being) – good news for those with salary-sacrifice arrangements.
On the positive side, the Triple-Lock (being the Government’s guarantee that the Manx State Pension will rise each year by the highest of three measures; inflation, average wage growth or 2.5%) has been applied to state pensions meaning a 4.8% increase for those of pension age.
A £2,250 increase in the personal tax allowance to £17,000 (or £34,000 for a jointly assessed couple) combined with higher rate income tax remaining at 21% means a few more pounds in the pocket for most Isle of Man residents.
In summary, this year’s Budget delivered welcome stability for savers and pensioners. With no changes impacting personal or occupational pensions, the tax efficient advantages of an Isle of Man pension remain firmly in place. A steady, predictable outcome, exactly what we like to see from a pensions perspective.
John Batty
Technical Sales Manager
