In addition to precedent, the laws of the Island develop through statute from two main sources: Acts of Tynwald and Acts of Parliament in Westminster. The power of the United Kingdom Parliament, and its predecessor the English Parliament, to legislate directly for the Isle of Man has a long history, and significantly pre-dates the 1765 revestment of the Island to the British Crown. One such example of English legislation applied to Man was the Bishoprics of Chester and Man Act 1541, which attached the Diocese of Sodor and Man to the Province of York. The judgement in the Derby Dower Case clarified the extension of English statutes to the Isle of Man, stating that a reference to the Island was required: "no general Act of Parliament extended to the island, but that by special name an Act might extend to it". The apparent requirement for an explicit reference to the Isle of Man within an Act of Parliament was rejected by the Staff of Government Division in Attorney-General v Harris & Mylrea wherein they ruled that the clear intention of Parliament to extend an Act to the Island was sufficient. Therefore, English legislation does not by default extend to the Isle of Man. In most cases it will be specifically applied to the Island, and this is customarily done with the consent and approval of Tynwald. It has been held by the Judicial Committee of the Privy Council that Acts of Parliament can also automatically apply to the Isle of Man by 'necessary implication'. Today, Acts of Parliament are adopted by the Isle of Man to avoid unnecessary duplication, or where a consistent approach is essential because of an international aspect to the issue.
Relationship between insular and Parliamentary statutes
The relationship between the statutes of Tynwald and Parliament is unclear. For many centuries and until comparatively recently, it was assumed that Acts of Parliament were the supreme law of the Isle of Man. Manx courts would disapply any part of an Act of Tynwald that conflicted with an Act of Parliament applicable to the Island, even if the Act of Tynwald was a later law. From the early 1980s, the Staff of Government Division began to assert that there was no hierarchy of legislative acts, and Tynwald and Parliament were concurrent and coequal. This departure from previous practice has not yet been tested by appeal to the Privy Council.
Notable differences in current laws
Despite the heavy English influences on Manx law, increasingly the island has 'gone its own way'. Much of its legislation mirrors that of the UK to a greater or lesser extent but much does not. In the past there have been key differences on
speed limits – while the Island has speed limit laws more than half its roads are derestricted – that is to say they have no specific speed limit.
taxation – the taxation rates in the Isle of Man are far lower. There is no Corporation Tax, no Capital Gains Tax, no inheritance tax, and a 20% top rate of income tax.
