A petition has been launched calling on the Isle of Man Government to return a surprise £21.3 million income tax windfall directly to taxpayers.

The campaign, spearheaded by the Manx TaxPayers’ Alliance, was launched on Tuesday following the release of the Government’s Central Government Summary Management Accounts for the 2024-25 financial year.

The accounts revealed income tax revenue had outperformed expectations by £21.3 million, largely due to higher interest rates boosting returns for savers and real earnings growth.

‘This money wasn’t planned for, isn’t needed for any specific purpose, and should be returned to the people who paid it,’ said Michael Josem of the Manx TaxPayers’ Alliance.

‘The Government has already funded everything it planned to do. This extra £21.3 million is a windfall surplus that belongs in taxpayers’ pockets, not government coffers.’

The petition proposes the windfall be divided equally among the island’s approximately 45,000 income taxpayers, equating to a one-off rebate of around £473 per person.

‘This extra tax was collected in error because the Treasury Department made a bad forecast,’ said Mr Josem.

‘The Treasury shouldn’t retain extra income tax simply because it made a forecasting error. That’s a recipe for further mistakes.’

Michael Josem of the Manx Taxpayers Alliance (Media Isle of Man )

According to the Alliance, the rebate would provide meaningful help to islanders amid ongoing cost-of-living pressures, with the money potentially going towards energy bills, groceries or savings.

Mr Josem insists that refunding the money would not affect the Government’s ability to fund services, as the accounts show all departments, except the Department of Health and Social Care (DHSC), remained within budget.

The DHSC required a £15.3 million supplementary vote, approved at this month’s Tynwald sitting, to support Manx Care’s overspend.

Elsewhere, National Insurance income was £13.3m over budget, although benefits such as state pensions also exceeded expectations.

The accounts also confirmed that the successful conclusion of the FERSA agreement with the UK meant £51.5 million previously held in contingency could be returned to reserves - although this was described as an ‘accounting adjustment’ rather than a cash gain.

Dr Alex Allinson, Treasury Minister, welcomed the stronger-than-expected tax receipts when the figures were published, saying: ‘It is positive that income tax receipts are higher than expected and we continue to monitor this area to understand whether the increase will be restricted to this year or will be repeated in the future.’

He added: ‘These accounts demonstrate that while considerable challenges remain around funding the cost of healthcare, a position that’s not unique to the Isle of Man, Government has achieved a stronger level of control over our expenditure.’

Dr Alex Allinson
Treasury Minister Dr Alex Allinson (Media IoM)

Mr Josem, however, remains adamant the money should be returned: ‘This is about a fundamental principle.

‘When government takes more than it needs, it should give it back. We’re calling on all island taxpayers to sign our petition and make their voices heard.’