Income tax is assessable on income less any allowable deductions. The rules for
allowable deductions for individuals engaged in a trade are similar to those for
companies. In addition, individuals are able to take advantage of deductions in respect
of pension premiums, interest paid to an IOM lender of up to £7,500 per person per
annum, nursing expenses (up to £9,300 per annum) and private medical insurance
payments of up to £1,800 per annum made by taxpayers aged over 60.