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Tax co-operation agreements with the United Kingdom come into force 6 April 2009 On 29 September 2008, the Isle of Man concluded taxation agreements with the United Kingdom. The Isle of Man ratified the agreements on 18 November 2008, and the Chief Minister, Tony Brown MHK, informed the government of the United Kingdom that ratification had taken place. The United Kingdom government has now confirmed that it has completed its own ratification procedures and, as a consequence, the agreements entered into force on 2 April 2009. The governments have agreed to amend the provisions of the 1955 double taxation agreement by adding provisions on the taxation of income from pensions and a mutual agreement procedure. Now that the new provisions are in force, many pensions paid from the United Kingdom to people living in the Isle of Man will be taxed in the Isle of Man only. In addition, taxpayers will be given new rights under the agreement to ask one government to intervene in order to resolve problems arising from the application of the agreement. A tax information exchange agreement between the Isle of Man and the United Kingdom has also now entered into force. The negotiation, signing and ratification of tax co-operation agreements demonstrates the Isle of Man’s commitment to international standards and the global effort to establish a system based on co-operation between countries, transparency and effective exchange of information in tax matters; all of which strengthen financial stability. As a result of signing these agreements the Isle of Man has been included on the OECD “white list” of 40 jurisdictions that have substantially implemented internationally agreed tax standards, published following the G20 meeting in London on 2 April 2009. The texts of each agreement can be viewed here. Malcolm Couch Assessor of Income Tax More stories >>>
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