Isle of Man Indirect Tax Revenue Sharing
(13 years, 4 months ago)
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The Exchequer Secretary to the Treasury (Mr David Gauke)
The Treasury has agreed a revision to the formula governing the sharing of joint indirect tax revenues under the 1979 Customs and Excise agreement with the Isle of Man.
The new formula is intended to give the Isle of Man the revenue that they would collect if they ran their own indirect tax system, while providing the Isle of Man with generous transitional payments. In 2010 the Isle of Man changed the way that it measured its national income to more closely follow international standards. Under the previous formula this would have implied a significant increase in the Isle of Man’s share of joint revenues. The new formula provides the Isle of Man with a share of joint indirect tax revenues similar to that which the UK Treasury expected when the last formula was agreed in 2009.
The Treasury welcomes the recognition by Isle of Man Government that the previous revenue sharing formula was not sustainable and we are pleased that a new formula has been agreed, following negotiations. The Treasury hopes that it provides a stable and secure basis for the long-term future of the Customs and Excise agreement between the United Kingdom and the Isle of Man.