The Agreement between the Isle of Man Government and Government of the United Kingdom of Great Britain and Northern Ireland for the Elimination of Double Taxation with respect to Taxes on Income and on Capital Gains and the Prevention of Tax Evasion and Avoidance and Protocol has come into force.
The Agreement was given effect by an exchange of letters signed in London on 2 July 2018 by Chief Minister Howard Quayle MHK and Mel Stride MP, Financial Secretary to HM Treasury.
It was then ratified at the October 2018 sitting of Tynwald, when the Isle of Man Government informed the UK Government that it had completed its own procedures. The UK Government recently notified the Isle of Man Government that it had completed its own ratification procedures.
The Agreement replaces the Double Taxation Agreement that was signed in 1955.
Treasury Minister Alfred Cannan MHK said:
‘The new Agreement confirms the termination of the Island’s oldest double taxation agreement, which was signed in 1955, and brings to effect a modern double taxation agreement based on the OECD Model.’
‘This Agreement meets the latest international standards and includes a number of new provisions that will provide greater certainty for individuals and businesses, including a tiebreaker provision that will assist those taxpayers who are resident for tax purposes in the Isle of Man and the UK at the same time.’
The text of the Agreement can be viewed on the International Agreements page of the Isle of Man Treasury Income Tax Division’s website.