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HMRC internal manual

Double Taxation Relief Manual

Double Taxation Relief Manual: Guidance by country: Isle of Man: Pensions

Under paragraph 5A of the Arrangement, (see DT9950 for the date from which the paragraph has effect) pensions paid from a United Kingdom pension scheme to a resident of the Isle of Man (who is not also a resident of the United Kingdom, see DT9953) are not taxable in the United Kingdom.

This applies also to United Kingdom government service pensions (those paid to former civil servants, former members of the armed forces, etc) unless the individuals are not “ordinarily resident” in the Isle of Man. In these limited circumstances, under paragraph 6 of the Arrangement, the pensions are exempt from Isle of Man tax and the United Kingdom may still tax the government service pension.