'Adventurous' budget sees 10 per cent tax band scrapped

Minister Eddie Teare says it represents a focus on fairness and honours government's promise to balance the books; which has been achieved with a £2m surplus.

 

There are some proposed changes to taxation, with the removal of the 10 per cent band and a uniform rate of 20 per cent taxation for anyone earning over £14,000.

 

For higher earning individuals the tax cap is set to be increased to £125,000 - this is expected to generate an extra £125m over the next five years.

 

All proposed changes to taxation would only be introduced if given Tynwald backing next year. 

 

Elsewhere there will be an 82.7 per cent increase in the Carer's Allowance, which will benefit 320 carers at an additional cost of £850,000 per year.

 

An extra £3m will be ring fenced for the Regeneration Fund and £2m has been injected into government's ICT fund.

 

The ailing Capital Fund will receive a fresh revenue stream in the form of loan interest charged to departments.

 

We quizzed Mr Teare if the plans surrounding tax will be beneficial to some and to the detriment of others: