The result of the UK election could lead to a delay in the final decision on tax revenue sharing between the island and the British government according to Treasury Minister Alfred Cannan.

Mr Cannan was asked by Jason Moorhouse (Arbory, Castletown and Malew) for an update on the Final Expenditure Revenue Sharing Arrangement (FERSA) and outlines the method of calculating of the island’s share of VAT and shared duties.

Mr Cannan said: ’In accordance with the agreement, the Isle of Man Government must undertake surveys every five years to determine, as accurately as possible, the amount of VAT that is generated by island residents, businesses and government.’

He also revealed the most recent survey has been completed and the ’findings are in the process of being analysed and agreed with the UK’.

Responding to a supplementary from Mr Moorhouse, the Treasury Minister said the negotiations over the settlement should be concluded in time for the Budget in February 2020.

He added: ’In short, yes there is as a possibility that negotiations could be impacted and affected by events in the UK.’

The FERSA was agreed in 2016 by former minister Eddie Teare as a revision of the formula that governs the sharing of joint indirect tax revenues setout under the 1979 Customs and Excise Agreement.