NHS Levy Consultation

Overview

The purpose of this consultation is to obtain views in relation to the introduction of a health levy.

The NHS Levy would be a new charge on income that would be separate from existing income tax with its own calculation base, rate and ‘Levy Free’ amount.

The key points being consulted on are:

• Collection by Income Tax Division
   
• Ring-fencing of revenue generated for health services
   
• Income basis on which the Levy is charged (definition to be determined but not just taxable income)
   
• Treatment and calculation of jointly assessed couples
   
• Subject to a maximum charge e.g. £5,000 individuals, £10,000 jointly assessed
   
• An allowance or ‘Levy Free’ amount – similar principle as the Personal Allowance for income tax

Why your views matter

The Tax Strategy 2024-2026 was debated and received by Tynwald in March 2024. This consultation directly supports the priority action to 'investigate a new levy – ring-fenced for the health service' under the strategic objective 'we will raise sufficient taxes to meet our needs through a sustainable and diversified tax system that has flexibility to adjust as and when circumstances change'. 

The reason this is a priority in the Tax Strategy relates to the projected shortfall in funding in respect of health and care services. The funding from the Levy alongside increased budgetary scrutiny and efficiency savings will be used to stabilise future health care funding at a level that supports the needs for all our community.

Your input will help us make an informed decision on the future funding for our health service. 

Reasonable adjustments and alternative formats

The Treasury is committed to equal opportunities and our aim is to make our documents easy to use and accessible to all.

We will take steps to accommodate any reasonable adjustments and provide such assistance as you may reasonably require to enable you to access or reply to this consultation.

If you would like to receive this document as a paper copy, in another format or need assistance with accessing or replying to this consultation, please email Consultation.ITD@gov.im or telephone +44 1624 685316.

Responding to this consultation and questions

You can respond to this consultation online by clicking on the 'Online Survey' link below. Alternatively you can download a paper version of this consultation in the 'Related' section below and email it to Consultation.ITD@gov.im or post it to:

Senior Policy and Legislation Officer,
Income Tax Division,
Government Offices,
Bucks Road,
Douglas,
Isle of Man,
IM1 3TX