Tax rates for most residents will stay the same – but higher earners will pay more.

The personal income allowance stays at £14,500 for individuals and £29,000 for jointly assessed couples, and the 10% band remains fixed at £6,500.

But a change has been introduced for higher earners whose personal allowance will be reduced by £1 for every £2 above an income of £100,000, or a jointly assessed couple’s total income is above £200,000.

The Treasury Minister said: ‘In essence this means that a person with a total income of £129,000 or over, or £258,000 or over in the case of a jointly assessed couple, will have their personal allowance reduced to zero.

‘This progressive measure means that those who have more, pay more.’

The tax cap for the super-rich stays at the same level with the maximum income tax liability for an individual remaining at £200,000 and £400,000 for a jointly assessed couple.

Addressing the needs of business, Minister Allinson confirmed the National Insurance holiday scheme designed to attract workers and returning students to the island, will continue for another year with further improvements.

There are no changes to Class 1 and 4 NI rates for 2023-24.

The lower earnings limit for employed contributors will remain at £123 per week, but adjustments are being made to certain thresholds and limits.

Uprating of benefits is expected to raise spending by £26.4m in 2023-24.

Maternity, paternity and adoption allowances will increase by 16.8%, while the basic state pension and Manx state pension will see an uplift of 10.1%.

Income support, child benefit, Employed Person’s Allowance and income-based Jobseeker’s Allowance will rise by 9.8% and carer’s allowance by 10.7%.

This year, revenue from income tax and NI were ahead of budget, by £21.9m and £3.6m respectively, but revenue expenditure was £8m over-budget and Customs and Excise receipts were slightly behind budget by £265,000. This has produced a forecast overall surplus of £10.9m.