The tax cap is working, the Treasury Minister has insisted.

Alfred Cannan told Tynwald there were 66 tax cap elections in 2015-16, of which 46 were resident here for tax purposes before the policy was introduced in 2006.

And he said that there had only been 11 resident individuals and three jointly assessed couples with liabilities above the tax cap in the year before the measure was brought in.

But numbers have come down. Back in 2009, the then Treasury Minister Allan Bell told the House of Keys there were nearly 90 people on the tax-capped list.

In a written reply to a Tynwald question from Ramsey MHK Lawrie Hooper, Mr Cannan said it wasn’t necessarily the case that Treasury is foregoing a pool of additional tax revenue.

He said if the policy wasn’t in place it is ’highly likely’ individuals would restructure their financial affairs to reduce their tax liabilities.

He pointed out tax cappers make a significant contribution to the economy.

Mr Cannan announced in his Budget that the tax cap will rise from £125,000 to £150,000 next year.