Treasury has today noted the contents of the UK Autumn Statement delivered by Chancellor Rachel Reeves MP while looking ahead to the island’s annual Budget.
The Isle of Man’s budget will be announced in February 2026.
Treasury Minister Dr Alex Allinson MHK said: “The Treasury is in the process of reviewing the measures announced today in Westminster and assessing how they may affect the island.
“While planning for our own Budget next year has been ongoing for some time, it is important that today’s announcements and any potential impact are properly considered before finalising the details.”
Increases
In accordance with the Autumn Statement, the Isle of Man will increase duty rates for tobacco products by Retail Price Index plus 2%, from 6pm this evening (November 26).
All alcohol duty rates will increase from February 1, 2026 in line with the UK RPI.
In accordance with the Customs and Excise Agreement with the UK, the Isle of Man will continue to apply the cut in fuel duty by 5p per litre until September 2026.
UK Budget
At a glance, here are some of the changes that will be brought in with Rachel Reeves new budget:
She announced that tax thresholds will be frozen for an additional three years from 2028.
The gambling industry will also be taxed more, to raise more than £1bn.
There will be a new mileage tax on electric cars, and change to capital gains tax for employee ownership trusts.
The tax paid on dividends, as well as property and savings income will rise 2 percentage points.
Taxes
The UK government will scrap the two-child benefit cap from April 2026.
Salary-sacrifice pension contributions above £2,000 to face national insurance.
She also wants to see mansion tax introduced on properties worth more than £2m.
Wages
From next April, the national living wage in the UK will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over.
The national minimum wage rate for 18 to 20-year-olds will increase by 8.5% to £10.85 an hour.
For 16 to 17-year-olds and those on apprenticeships, the national minimum wage will increase by 6% to £8 an hour.
